Please help me with an assignment by discussing the following questions:
Are the tax consequences of the formation of a partnership similar to those of S corporations?
If there are differences, how and why are they different?
Please include some references for further investigatory purposes.© BrainMass Inc. brainmass.com June 4, 2020, 1:58 am ad1c9bdddf
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A partnership is an unincorporated business. While a partnership acts similarly to an S-Corp in that it "passes profits/losses" through to its partners, it does not have the same liability limits as an incorporated business. That is, there must be at least one "General Partner" that accepts unlimited liability for the operations of the business. Strictly for tax ...
This solution explains the difference between tax consequences and liability, and the differences between S Corporations, and Partnerships. Additionally this solution includes two APA formatted references for further research of the topic.