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swing blade
11-01-2004, 11:40 AM
Ok I am in a partnership and have been researching how the tax situation is handled. From what i have read it appears that the partnership operates as a "pass-through" taxation business; meaning that all income/losses are taxed at the individuals level and not that of the partnership itself. Is this correct? also what percentage of your income are you paying out in taxes?

MMLawn
11-01-2004, 11:56 AM
That depends on how the partnership is set up, a Inc., LLC., etc.

The best advise to to hire a good Accountant/CPA, esp in a partnership, period.

swing blade
11-01-2004, 12:13 PM
well I was a sole proprietor for a few years, but for this season its a partnership formed as an llc

Gautreaux's LNG
11-01-2004, 12:51 PM
Let him do your taxes! He'll cost you some but I guarantee you'll get more back!

Good luck with the pertnership! took one a few years back cost me bunch of money to get rid of him!

boonhogganbeck
11-01-2004, 12:58 PM
Hi there, I am a CPA. OK, I'm going to assume a couple of things here. First, that you have a partnership agreement and second that you and your partner are each 50% partners. Whether you are a general partnership or an LLC, you are still just a partnership for tax purposes. For tax purposes an LLC is considered a disregarded entity. LLC is a legal form of business that can be a sole proprietorship, a corporation, or a partnership for tax purposes. If it is a partnership fill a form 1065 for the partnership. Each partner will receive a form K-1 stating his/her share of partnership income which is reported on schedule E of the partner's form 1040. If you don't have one already, find a CPA.