There are five different entity types for partnerships. Please refer to the following explanations of each type of partnership to determine the appropriate entity type:

• General partnership – a general partnership is composed only of general partners.
• Limited partnership – a limited partnership is formed under a state limited partnership law and composed of at least one general partner and one or more limited partners.
• Limited Liability Partnership (LLP) – An LLP is formed under a state limited liability partnership law. Generally, a partner in an LLP is not personally liable for the debts of the LLP or any other partner, nor is a partner liable for the acts or omissions of any other partner, solely by reason of being a partner.
• Limited Liability Company (LLC) - An LLC is an entity formed under state law by filing articles of organization as an LLC. Unlike a partnership, none of the members of an LLC are personally liable for its debts. An LLC may be classified for federal income tax purposes as a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in Regulations section 301.7701-3. See Form 8832 Entity Classification Election, for more details. Note. A domestic LLC with at least two members that does not file Form 8832 is classified as a partnership for federal income tax purposes.
• Foreign partnership - a partnership that is not created or organized in the United States or under the law of the United States or of any state.

For more partnership formation, refer to IRS Publication 541.

To select your partnership entity type within TaxAct^® 1065:

Desktop

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click the Basic Information dropdown, then click Schedule B – Other Partnership Information.
3. On the screen titled Schedule B - Entity Type, click the Circle next to the correct entity type.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.