Partnership: An introduction to this form of doing business
A partnership is an association of two or more persons to carry on as co-owners a business for profit. A partnership with only one person is a proprietorship. In order to have a partnership, there must be an agreement among the partners. This agreement may be expressed in words either written or oral or it may be implied from the conduct of the parties by exercising control over the business and sharing profits. The partnership pays no tax. The income and operating costs, including depreciation, are passed through to the partners. The partnership files an informational tax return and issues K-1 forms to each partner. These are attached to the partners’ tax returns.