Which of the following is not a characteristic of a partnership?
A)Must be formed under state law
B)Formation is generally tax free except for services received for a partnership interest
C)Distributions of entity income are tax-free
D)Loss is never recognized on a nonliquidating distribution

Question

Quizplus · Accepted Answer

Partnerships are not required to be formed under state law; they can be formed through a simple agreement between the partners without any formal state registration, unlike corporations.

Which of the Following Is Not a Characteristic of a Partnership