Partnership

Partners are responsible for their debts and liabilities, and also are legally liable for the actions and debts of the opposite partners. A partnership doesn’t pay tax on its income, however, it’s spread equally across all partners from which tax is going to be paid on their share of the business. Under a partnership, you’ll get to submit an income tax return both for your business, and a private return as a partner of the business, allowing you to separate business expenses and deductions from private expenses. Some deductions aren’t available to the partnership, but could be claimed by the partners.