Fundamentally, it is considerably true to express that, this taxation regime appreciates the position that not all partnerships are made up of shareholders, who assume similar or equal shares. Therefore, by placing the entire business upon the generic rules of taxation, as seen in corporations, either of the subscribers could be advantaged at the expense of the other. Second of all, in coherence to the situation in corporations, the amount charged in partnerships as tax depends solely on the nature, stability, and characteristics of the business-associated undertakings that the related institution involves. Lastly, in the event one of the partners in a partnership fails to submit his or her tax returns or opts not to pay tax for a period beyond what is expressed in the law, the defaulting individual becomes personally responsible for the same. Although this automatically impinges how the overall partnership operates, the other law-abiding partners continue to enjoy the immunities, privileges, and rights that concern their positions as shareholders.
Generally, as manifested in the preceding discussion, it is clear that the manner, in which the law on taxation treats and applies to corporations and partnerships, influences how shareholders and partners relate as well as their rights.
From a pragmatic point of view, a business person could opt to become a partnership over corporation due to the succeeding justifications. Firstly, partnerships enjoy party autonomy. This is adduced by the position that it is upon the partners to outline their respective shares. Actually, it is from these dividends that the state makes tax deductions, which must be realized. Furthermore, with this phenomenon, an individual partner's omissions and wrongs, as concerns complying with the rules of taxation, do not substantially affect the rights and primary responsibilities of the other partner. Secondly, partnerships are more desirable and fulfilling than corporations because they are devoid of double taxation.
