A partnership is one of the legal structures that can be used to conduct business, along with sole proprietorships, corporations, and others. It is a grouping of individuals or corporations that agrees to contractually come together to achieve a particular business goal. Usually, there is a written partnership agreement explaining the roles and responsibilities of the partners and the financial parameters of the partnership. From a tax standpoint, a partnership is usually considered a flow-through entity, which means it is the partners who report the income directly. This can be useful for startups that expect losses early on and want to pass on the deduction of those losses directly to the partners.