rjs
Level 15
Level 15

Business & farm


@Aaronbunce79 wrote:

I write as a partnership with a foreign counterpart.


You have a partnership with a foreign partner. Even if you don't have a formal written partnership agreement, you have a partnership, at least as far as taxes are concerned. You need to get some high-level professional tax and legal advice right away.


A partnership is a legal entity separate from the partners. The partnership has to file its own partnership income tax return, Form 1065, and distribute the income to the partners. Royalties should be paid to the partnership, not to one of the partners.


See the following page on the IRS web site for more information.


Helpful Hints for Partnerships With Foreign Partners