MGMT 127B Lecture 10: Lecture on 11:28
Document Summary
This discussion includes every type of company except c or s corporations: various business entities are governed by partnership tax rules, including general partnerships, limited partnerships, limited liability partnerships (llps), and limited liability companies (llcs) There is a lot in common between s corps and partnerships. The partnership also informs each of its owners what their fair share of the profit/losses are. Just like an s corp, a partnership files a tax return with the gov but doesn"t pay taxes on it through a k1 form. Note that the word member is synonymous with partner. Inside basis: the partnership"s basis in its assets, such as receivables, inventory, or equipment. Note that this is just assets: outside basis: a partner"s basis in his ownership interest. If a partner is entitled to receive a fixed amount annually regardless of the level of partnership profits, this sum is called a guaranteed payment.
