Everyone has heard the phrase “two heads are better than one,” and this is can be said to be an advantage of partnering with someone in business. There are quite a few benefits to having a partner and quite a few drawbacks as well.

• Discuss some advantages and disadvantages of structuring your firm as a partnership. 

• Explain how the partnership is taxed. You know that the partnership is considered a flow-through entity, meaning it is not taxed as a business; however, the IRS does indeed collect tax from the partnership’s income. Explain how the IRS accomplishes this and what forms are required to report income to the IRS to pay taxes.

• Finally, other than the income tax discussed above, what other taxes are collected and what forms are utilized to pay these?