Forming a partnership is a great way for multiple people to start a business together. Not only are partnerships easy to start, but they’re convenient to operate too. If you’re looking to start a partnership, you must make sure you file everything correctly. At EZ Filing Solutions, we help entrepreneurs like you form partnerships with ease.
One of the main reasons people file for a partnership is because of the simplicity. Partnerships are easy when it comes to setting up and paying taxes. If you want to set up your own partnership, all it takes is a simple private agreement and easy filing. Partners report profits on their individual tax returns instead of a business tax return. This makes starting and operating a partnership a convenient venture.
If you’re having trouble deciding whether to form a sole proprietorship or partnership, it’s important to know the differences. First, the main difference is that a partnership is for two or more people. One benefit of a sole proprietorship is that you could make every decision without having to seek the input from partners. However, a partnership may be the best way to run your business if you have multiple people who want to do it.
Once you form your partnership, you may need to renew its status every now and then. The frequency with which you need to re-file depends on your local or state laws. EZ Filing Solutions will update you if your partnership needs to be renewed.
Your partnership will need an EIN if you or your partners have concerns about using your own Social Security number for taxes. A tax ID is also a necessity if you plan on opening a business bank account or credit card.
Ready to start your new business and get an EIN? Applying for a partnership tax ID just takes a few minutes with EZ Filing Solutions.
To receive a new IRS Federal Tax ID Number, or Employment Identification Number, simply complete our IRS Tax ID Application form online. Our user-friendly simplified form allows you to securely apply for a Federal Tax ID number, for business or personal use in less than 10 minutes.