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Although partnerships are common in the construction business, they're full of potential pitfalls. The first of these is your choice of a partner. Remember that your partner will help determine your income, your assets, your liabilities, and your reputation. It's often less painful to divorce a spouse than to break up a partnership. This article discusses the formation of a partnership through the use of a partnership agreement. It assumes that you've already reached the decision to form a partnership and that you're willing to accept the personal and tax liabilities that come with it (for instance, partners must pay self-employment tax and can only partially deduct the cost of medical insurance). Although each partnership has its own unique needs, and each