Partnerships

Everyone has heard the phrase “two heads are better than one,” and this is can be said to be an advantage of partnering with someone in business. There are quite a few benefits to having a partner and quite a few drawbacks as well.

• Using a minimum of 450 words, discuss some advantages and disadvantages of structuring your firm as a partnership. 
• Explain how the partnership is taxed. You know that the partnership is considered a flow-through entity, meaning it is not taxed as a business; however, the IRS does indeed collect tax from the partnership’s income. Explain how the IRS accomplishes this and what forms are required to report income to the IRS to pay taxes.
• Finally, other than the income tax discussed above, what other taxes are collected and what forms are utilized to pay these?