Unlike sole proprietorship, a partnership pays taxes on its income and partners must exclude partnership items on their tax forms

Name: Unlike sole proprietorship, a partnership pays taxes on its income and partners must exclude partnership items on their tax forms
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Question

Quizplus · Accepted Answer

In a partnership, the partnership itself does not pay income taxes. Instead, profits and losses are passed through to the partners, who include their respective shares of the partnership's income or loss on their personal tax forms.

Unlike Sole Proprietorship, a Partnership Pays Taxes on Its Income