Legal Question in Business Law in New Jersey

Husband & Wife Partnership

I am starting a business with my wife. The tax/SS regulations I have seen say that if we are working and sharing profits of the business together we are running a general partnership by default. I am about to set up the general partnership details and initial financials but I have seen a reference from a downloadable partnership that a husband and wife can NOT form a partnership. Is this true?


Asked on 8/23/04, 3:07 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Husband & Wife Partnership

Any 2 people can form a partnership, even spouses. All that happens is that any distributable share of partnership profits or losses are both reported on your respective or joint income tax returns. Think of this as being no different than if the spouses had individual bank accounts at the same bank and both received interest on the accounts. 2 entries in your joint return.

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Answered on 8/24/04, 11:27 am


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