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GENERAL OVERVIEW OF A FLOWTHROUGH LIMITED PARTNERSHIP STRUCTURE FOR AN INITIAL PUBLIC OFFERINGBy Brian Koscak and David Swain Cassels Brock & Blackwell LLPThis paper has been prepared for presentation.

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A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" profits or losses to its partners.

A limited partnership is a pass-through entity. The partners report the profits and losses of the business in their individual tax returns.

Flow- through businesses include sole proprietorships, partnerships, and S corporations. Partnerships: Partnerships file an entity-level tax return (Form 1065), but profits are allocated to owners who report their share of net income on Schedule E of their individual tax returns.

With flow-through entities, the income is taxed only at the owner's individual tax rate for ordinary income: The business itself pays no corporate tax. Sole proprietorships, partnerships (limited, general, and limited liability partnerships), LLCs, and S Corporations are all types of flow-through entities.

Partnerships and LLCs pass through income, deductions Partnerships and limited liability companies (LLCs) are not separate taxable entities. This means that no federal tax is paid at the partnership or LLC level: All business income and deductions are passed through to the partners or members.

A flow-through entity is defined as an S corporation or a partnership under the internal revenue code for federal income tax purposes.

Limited partnerships, like general partnerships, are pass-through or flow-through entities. That means that all partners are responsible for taxes on their share of the partnership income, rather than the partnership itself.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232