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General partnerships are easy to set up as you are not required to file any registration documents. Unlike a corporate structure, there are also no ongoing compliance requirements, like annual reports.

In California, you are not required to file any paperwork with the State or elsewhere to create a general partnership (although you can choose to do so). If you do business under a trade name, then you must file a fictitious business name statement in the county where your principal place of business is located.

For tax year 2022, Massachusetts has a 5.0% tax on both earned (salaries, wages, tips, commissions) and unearned (interest, dividends, and capital gains) income. Certain capital gains are taxed at 12%.

A general partner is a part-owner of a partnership business and is involved with its operations and shares in its profits. A general partner is often a doctor, lawyer, or another professional who has joined a partnership in order to remain independent while being part of a larger business.

Form 3 is a legally required in- formational return under MGL ch 62C, and sub- ject to penalty for late filing. Schedule 3K-1 is designed to allow the partner- ship to report each partner's distributive share of partnership income. A separate Schedule 3K-1 is required for each partner.

Filing requirements for Partnerships Partnership must issue Schedules 3K-1 to individual partners. Copies of Schedules 3K-1 must be submitted to the Department of Revenue with Form 3. The state forms to file are the Form 3 and Schedule 3K-1. The federal forms to file are Form 1065 or 1065B & Schedules K-1.

A partnership is not directly subject to income tax. Instead, each partner is taxed on the part- ner's share of the partnership income, whether distributed or not.

What is a General Partnership? A general partnership is a business entity that is made up of two or more entities to carry on a trade or business. Each partner contributes money, property, labor, or special skills and each partner shares in the profits and losses from the business.