The sole proprietor is responsible for filing the annual 1040 income tax return by April 15 of each year. They do not have to file any corporate tax returns. Partnerships General partnerships consist of two or more people who decide to form a business as partners. The details of the partnership relationship are agreed upon by the partners and should be contained in a partnership agreement which is usually prepared by an attorney. In a general partnership the partners have unlimited liability.
General partners are jointly and severally liable for obligations of the partnership.
Partners are taxed on their share of partnership income, whether or not distributed. Corporate taxes do not apply. Since there are no partnership laws in the CNMI, it is important that all aspects of the partnership be set forth in a written agreement. Although it is not required, a partnership may complete a Partnership Registration Form and file it with the Registrar of Corporations. The partnership registration form should be signed by all partners and acknowledged before a notary public.