[p]Partnerships are an old, respected type of business in the U.S. Today, there are various forms of partnerships designed to help partners limit their liability. [/p]
[p]You and a friend have decided to go into business together. Or maybe you and your spouse
or a family member are eager to work together in a business. If there are several people running a business, you might want to form a partnership. How do you get started?[/p]
Definition of a partnership.
To set up a partnership the right way, you will need a partnership agreement. Here is a list of the terms and conditions you will need to include in this agreement.
You may have heard the terms - general partnership, limited partnership, limited liability partnership - and been confused. This article might help you sort out the different partnership types.
Partnerships pay all the same taxes as other businesses. In addition, partnerships pay income tax in a special way. Here is a list of all the taxes a partnership pays.
A partnership does not pay income tax directly; individual partners pay income tax based on their share of the profits from the partnership each year. Learn about the income tax forms you need to file for a partnership.
A husband and wife partnership may be considered as a special tax case called a qualified joint venture. If you qualify, you and your spouse can file Schedule C
forms instead of a partnership tax return, saving money on tax preparation.