It Takes Two: Business Partnership Income (Form 1065)
When it comes to business partnerships, successful teamwork and good communication can lead to great things for your company, your employees, and your clients. As we get closer to tax time, it’s important that you file the correct income documentation for your business with the IRS, and the 1065 form is just what you and your business partner need.
Form 1065 reports the percentage share of profit and loss allocated to each partner, both at the beginning and the end of the fiscal year. According to Investopedia, all profits and losses from a partnership are passed directly to the partners; the partnership never pays any taxes itself. Organizations that are exempt from paying income taxes, such as religious organizations or nonprofit group, have to fill out Form 1065 as well.
Want to learn more about how to fill out your partnership’s 1065 form? Check out this video: