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This video provides an overview of how partnerships are taxed in the United States. It explains what a partnership is, why someone would choose a partnership over an S-corporation, the different types of partnerships and partners, the importance of having a partnership agreement, the difference between a capital interest and a profits interest for a partner, how partnership income and losses flow through to individual partners, guaranteed payments, and basis for partners. A partnership consists of two or more persons who have agreed to carry on a trade or business, which can include a C corporation as a partner.
