PARTNERSHIPS

A partnership is established when two or more people agree to pool their financial, managerial, and technical resources in order to operate a business for profit (partners of a partnership can also be a corporation).

Each partner owes every other partner a duty to act in the best interests of the partnership. Like a sole proprietorship, a partnership is not taxed as a business that is separate from its owners. The income from the partnership is included as part of the partners’ personal incomes and taxed accordingly.