A partnership is a company that two or more people own together. Each partner contributes to all aspects of the company, and in return, they’re also personally responsible for all profits and losses.
Paying myself as a partner
If you’re a partner, you can pay yourself by taking a portion of the profits your business earns as a draw. This amount is reported as part of the Schedule K-1. You’ll need to pay taxes on your share of the profits and losses of the partnership on your personal income tax returns. Most likely, you wouldn’t pay yourself as if you were an employee.Updated September 26, 2017
This article provides general information and shouldn’t be construed as tax, benefits, legal, or HR advice. Rules and regulations may change over time and may vary by location. So, please consult an appropriately certified expert (such as a lawyer, CPA, tax advisor, licensed broker, or HR expert) for advice specific to your circumstances.