1.  Federal Income Tax: 
– the P’s are assessed FIT on what they make, but the Pship itself is not subject to FIT. 
– The Pship is a flowthrough/pass-through entity. 
– The Pship’s income is only taxed once (at the Partner level).  The Pship may have to file an informational form, though, showing the allocation of the Pship’s money to the P’s.
– The Pship doesn’t have to actually distribute money for that income to be taxed to a P.  Every year the Pship’s income has to be allocated to the Ps and they will be taxed but they may not actually have that money distributed to them!!
2.  State Franchise Tax:  Pships do not pay state franchise tax (all kinds of Pships)
3.  Pships are not separately taxed entities ???