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This video provides an overview of how partnerships are taxed in the United States. It covers the definition of a partnership, why someone would choose a partnership over an S-corporation, the different types of partnerships and partners, the importance of a partnership agreement, the distinction between capital and profits interest for partners, how partnership income and losses flow to individual partners, guaranteed payments, and basis for partners. A partnership is defined as two or more persons carrying on a trade or business, including the possibility of a corporation being a partner in a partnership.
