A partnership is a business structure that is not incorporated as a corporation, is owned by two or more owners, and does not have a valid election to be treated as a corporation for income tax purposes. Each owner is called a "partner." Partners are responsible for both the success and failure of the partnership. In recent years, partnerships have been increasingly used as an organizational form. The partnership form allows taxpayers considerable flexibility in the terms of contributions, income, and loss allowances and distributions. One of the main benefits of the partnership is that its income is only taxed at the partner level. Partnerships are generally formed when two or more people with different talents come together to carry out a trade or business, a financial operation, or some business initiative to achieve a common economic benefit. It is important that partners share the same vision for the partnership and have the same goals. By complementing their efforts and fulfilling the promised contribution, each partner will be contributing to the success of the partnership.
