Does a silent partner have to pay taxes

Also known as limited partners, silent partners have little liability in forming a partnership with a business, as.The silent partner gets a certain amount of equity interest in a business in exchange for making a contribution of cash or assets to a business.Also, partners must pay twice as much as regular employees, because employees' contributions are matched by their employers.Not only can the silent partner claim tax deductions, you can use special allocation to distribute deductions where they do the most good.Even though a silent partner might have had nothing to do with why a business failed, he or she is still obligated to pay the price for their active partner's mistakes.A silent partner is an investor that provides capital and places full confidence in the general partner's ability to grow the business.

How did you become a silent partner?Forming a limited partnership (lp) can limit the liability of silent partners.A silent partner is an investor that provides capital and places.