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: https://youtu.be/UCsCIxyElcE To learn more about Schedules K-1, click here: https://youtu.be/24rz3cLUoO4 LLCs and how they relate to business organization and taxes are covered in this video: https://youtu.be/nJT-poAZ2tE 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.pdf Instructions for Form 1065: https://www.irs.gov/pub/irs-pdf/i1065.pdf Schedule K-1 (1065): "Partner's Share of Income, Deductions, and Credits:" https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf Investopedia: "Partnership: Definition, How it Works, Taxation": https://investopedia.com/terms/p/partnereship.asp nolo.com: "What is a Limited Liability Company (LLC)?": https://www.nolo.com/legal-encyclopedia/what-is-a-limited-liability-company.html 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.