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" any profits or losses to its partners.
https://www.irs.gov/businesses/small-businesses-self-employed/partnerships
Also see:
https://www.irs.gov/businesses/small-businesses-self-employed/forming-a-corporation
You and your co-owners should seek out a local professional to help you evaluate your options.
