A partnership is the relationship existing between two or more persons/entities who join to carry on a trade or business. Each person/entity contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
Partnership should issue schedules K-1 to each partner reporting pro-rata share of net taxable income (or loss) -
Some additional information about partnerships may be found in IRS Publication 541 -
A note is a different relation - that is not a partnership - but a creditor-debtor.
The creditor provides funds and the debtor is obligated to pay the full amount back with interest in a specified manner.
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