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Partnerships — Shared Ownership and Pass-Through Tax

A partnership is a business owned by two or more people who share profits, and often liabilities, between them. Partnerships are frequently taxed on a pass-through basis, with profits taxed in the partners' hands.

What it is

Partners agree how to share profits, losses, and decision-making. Depending on the form, some or all partners may be personally liable for the business's debts.

General vs limited partnerships

In a general partnership all partners typically share unlimited liability; limited partnership forms let some partners cap their liability in exchange for a more passive role.

Tax and founder fit

Pass-through taxation can simplify matters for small co-founded ventures, but unlimited liability in some forms is a real risk. Many founders compare a partnership with a limited company.

FAQ

Are partners personally liable in a partnership?
In a general partnership, often yes; limited partnership forms can cap liability for some partners. It depends on the form and jurisdiction. This is informational only.
How is a partnership taxed?
Many jurisdictions tax partnerships on a pass-through basis, so profits are taxed in the partners' hands rather than at entity level — but rules vary.

Related

Sources

  • OECD — OECD — economic and tax statistics (accessed ; reviewed )
    Covers: Comparable corporate tax, statutory rate, and economic indicators across member and partner economies.
    Does not cover: Effective tax rates, deductions and incentives, local surtaxes, and personal residency rules.
    Why it matters: Used as a cross-country baseline to sanity-check rates against primary tax-authority figures.
    Review cadence: Annual, plus on major statutory changes.
  • PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed ; reviewed )
    Covers: Corporate income tax, VAT, and dividend withholding rates across most covered jurisdictions.
    Does not cover: Your specific effective rate, bespoke incentives, rulings, or transactions requiring professional advice.
    Why it matters: Used to triangulate rates against primary tax-authority sources, not as the sole authority.
    Review cadence: Updated by the publisher per tax year; re-checked each data review.
Informational overview only. This page is not legal, tax, accounting, or incorporation advice. Rules commonly vary by jurisdiction, residency, ownership, tax status, and business activity, and can change over time. Verify details with the official registry and a qualified advisor. See the methodology, disclaimer, and sources.

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