Partnership Basics

When two or more people go into business together, the simplest type of business they can form is a partnership. This video describes what a partnership is, and the various types of partners and partnerships. It also describes the role the LLC plays in a partnership, as well as special considerations for spousal and family partnerships.

0:00 Introduction
0:28 What constitutes a Partnership?
3:11 Types of Partners
4:35 Types of Partnerships
5:31 Spousal and Close Family Partnerships
6:25: Conclusion

For a general overview of all types of business organizations, click here:    • Should your Business be a Proprietors...  

To learn more about Schedules K-1, click here:    • K-1's (for Beginners!)  

LLCs and how they relate to business organization and taxes are covered in this video:    • What is an LLC?  

Additional Information and Resources:

IRS Publication 541: "Partnerships," https://www.irs.gov/pub/irs-pdf/p541

IRS Form 1065: "Return of Partnership Income": https://www.irs.gov/pub/irs-pdf/f1065...

Instructions for Form 1065: https://www.irs.gov/pub/irs-pdf/i1065...

Schedule K-1 (1065): "Partner's Share of Income, Deductions, and Credits:" https://www.irs.gov/pub/irs-pdf/f1065...

Investopedia: "Partnership: Definition, How it Works, Taxation": https://investopedia.com/terms/p/part...

nolo.com: "What is a Limited Liability Company (LLC)?": https://www.nolo.com/legal-encycloped...

The Tax Geek on The Site Formerly Known as Twitter: www.twitter.com@taxgeekusa

The Tax Geek on Reddit: www.reddit.com/r/askataxgeek

Image/Video Sources:

Storyblocks.com
Wikimedia Commons
Pexels.com

The images of "Scott," "Allen," "Pamela," and "Paula" were generated by thispersondoesnotexist.com (stability.ai). Any resemblance between these images and any persons, living or dead, is incidental and not intended. No other artificial intelligence was used to research, write, animate, voice, or edit this video

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Creator Music

Outro Music: "Modern Attempt" - Track Tribe under license from YouTube Creator Music

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.