Partnerships

What Is a Partnership?

A partnership is a business with more than one owner that has not filed papers with the state to become a corporation or LLC (limited liability company).

How Partnerships Are Taxed

For many small businesses, paying income tax means struggling to master double-entry bookkeeping and employee withholding rules while ferreting out every possible business deduction. For partnerships, paying taxes also involves understanding difficult terms like "distributive share," "special allocation," and "substantial economic effect."

Fiduciary Duties in Partnerships

In partnerships, you may have duties of trust, known as fiduciary duties, depending upon the type of partnership and the nature of your role in that partnership.

Partnerships vs. Joint Ventures

Joint ventures and partnerships are common forms of legal structures used by business owners to combine resources, talents, or skills with another person or business.

Partnerships vs. LLCs

Many new businesses with more than one owner may consider whether to operate as partnerships or Limited Liability Companies (LLCs). There are two types of partner

Creating a Partnership Agreement

Spell out your rights and responsibilities in a written partnership agreement before you open for business. If you don't, your state's laws will control many aspects of your business.

Making Special Allocations

You must carefully follow IRS rules if you want to divide profits and losses in a way that's disproportionate to the owners' interests in the business.

How to Start a Partnership in California

This is a guide to forming a partnership in the state of California.

Partnership FAQ

Are there special rules for running partnerships? Are owners liable for business debts? Learn the answers to common questions about partnerships.

Opening a Business Bank Account

One of the most basic tasks when starting any small business is to set up a business bank account.