IRS Publication 583, Partnerships

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business.

A partnership must file an annual information return to report the income, deductions, gains, and losses from its operations, but it does not pay income tax. Instead, it passes through any profits or losses to its partners. Each partner includes his or her share of the partnership's items on his or her tax return.

More Information
For more information on partnerships, see Publication 541, Partnerships.


Sole proprietorships | Corporations | S Corporations | Limited Liability Companies


Information courtesy of the Internal Revenue Service.