A business license can be obtained from the county clerk's office and the cost is the same as a proprietorship license. Tax report preparation for a partnership is more complex than a sole proprietors but is minimal, when compared to a corporation. The monies received by the partners is taxed as ordinary income, just as in a sole proprietorship. In like manner, losses in a partnership are deductible against other income earned. Under the law, nominal partners are liable as if they were partners, if another party acts in the belief that the nominal partner was a true partner.
Ostensible partners are active and are known to be partners.
Secret partners are inactive but may be known to be partners. Subpartners are not members of the partnership but they contract with one of the partners and participate in the interest of that partner regarding the firm's business and profits. In the state of Wisconsin, there are three types of partnerships. It provides some liability protection for partners and continues to be taxed as a partnership. New or existing general partnerships can become Registered Limited Partnerships.