A partnership is a business entity in which partners own a portion of the business based upon a partnership agreement. This agreement should always in be writing. However, a partnership may be a verbal agreement. Profits and losses and items with special tax treatment are allocated based upon ownership or policy. The allocation also is determined by the agreement. A partner does not have to be an individual, but can be another type of entity such as a business. Profits can be considered income from self-employment, subject to Self Employment tax. Dunn Accounting has provided services in accounting and tax return preparation to many partnerships in a variety of businesses from janitorial services to construction, many of them family owned endeavors. We would be happy to assist your partnership and its partners. |
