Partnership

A nontaxable entity in which each partner shares in the profits, loses and liabilities of the partnership. Each partner is responsible for the taxes on its share of profits and losses, though the extent may vary depending on the kind of partnership is present. Generally, all partners share profits and liabilities equally, but there may be instances that partners have limited liability. Silent partners may also exist, wherein this kind of partner is not involved in the daily operations of the business.

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