Partners who are working for their partnership are generally considered to be self-employed and are not employees for federal tax purposes. This means that a partner is subject to self-employment tax and isn’t eligible for certain tax favored employee benefits sponsored by their partnerships. These rules would also apply to an LLC taxed as a partnership. Some taxpayers…

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Business operators form partnerships for a variety of reasons from raising funds, to widening the pool of knowledge and skills beyond a single owner. Under the Treasury Regulations, a partnership exists for tax purposes when two or more owners carry on a trade, business, financial operation or venture and divide the profits therefrom. Isn’t this simple and…

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