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in this video im going to give you an overview of how partnerships are taxed in the united states well talk about what a partnership is why someone would use a partnership instead of something like an s-corporation well talk about the different types of partnerships and partners why a partnership would have a partnership agreement what is this difference between a capital interest and a profits interest for a partner and well also talk about how partnership income and losses flow through to the individual partners what guaranteed payments are and what basis is and what that means to a partner so lets get into it what is a partnership partnership is just two or more persons who have agreed to carry on a trade or business now it doesnt have to actually be a physical person you could have one person another person and then you could have a c corporation that is a partner in a partnership okay so weve got an individual person here an individual person here and then we have a c corp