A partnership is an unincorporated business in which two or more individuals, called partners, manage the business and share equal responsibility for any debts incurred. Unlike a Limited Liability Company, in a partnership, each partner shares responsibility for the profits and losses and its debts and liabilities. The partnership itself does not incur an income tax liability, but each partner has to report their share of business profits or losses on their personal income tax return.
 
Partnerships must file a partnership retun in addition to the individual partner's income tax return.