Partnerships don't pay taxes, the partners do. Partners use the partnership's Schedule K-1 to report their shares of the partnership's income and deductions on their own personal tax returns. Corporations are the only regular business entities that pay their own income tax at rates that are different than individual tax rates. Corporations report income and deductions on Form 1120. Owners who work in the business are not subject to self-employment tax because they are employees of the corporation.
Half is paid by the employer and half by the employee through payroll deduction.
The amount is the same as self-employment tax but the paperwork is different. Seventy-five shareholders or less. S corporation shareholders, like partners in a partnership, use a Schedule K-1 to report their share of the business income and deductions on their own personal tax returns. The treatment of Social Security tax is different, however, in an S corporation than in a partnership. If you are sued After taxes, the most unwelcome assault on a business is a lawsuit.