In Incorporate Your Business Tax-Free? Avoid Three Problems, you learned how to generally incorporate your new or existing business tax-free.
You also get similar tax-free treatment for partnerships if you
form a new business as a partnership,
convert a proprietorship to a partnership by bringing in business partners, or
bring in an additional partner to an existing partnership.
Not only are the rules under Section 721 of the tax code for partnership formations simpler than those for corporations, but they also make it easier to qualify for tax-free treatment and more difficult to owe taxes on the transfer. ... Log in to view full article.