Partnerships are often used for business activities.
So are multi-member LLCs that are treated as partnerships for tax purposes.
A major reason is that these entities offer federal income tax advantages, the most important of which is pass-through taxation.
They also must follow special, sometimes complicated federal tax rules
A partnership is governed by a partnership agreement, which specifies the rights and obligations of the entity and its partners.
Similarly, an LLC is governed by an operating agreement that lays out the rights and obligations of the entity and its members.
These governing documents should address certain tax issues.
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