Discussion: "Structuring the Partnership Agreement"
Respond to the following:
• Go to the irs gov website and review the instructions for Form 1065, U.S. Return of Partnership Income and any supporting schedules in preparation of preparing a partnership tax return. Be prepared to discuss.
• Imagine that one of your colleagues has offered you the opportunity to become a partner in a new business venture. The colleague stipulates that due to your past relationship, there is no reason to draw up a partnership agreement. From the information you've gathered from Form 1065, identify the different partnership roles and select the one with the least potential liability if the business fails. Discuss the pros and cons of drawing up a partnership agreement. Defend your position.