EY analysis: Effect of proposed changes to partnership taxation and economic activity at partnerships
This report examines the economic activity of businesses organized as partnerships in the 2019
US economy as well as their growing importance over time. Additionally, this analysis highlights
how changes in partnership taxation could impact US partnership businesses. A partnership is an
unincorporated legal form of organization for a business in which two or more persons or entities
join together to conduct business and have a shared financial interest in the business.
Key results
Partnerships are a significant share of US economic activity
There were 744,000 partnerships in 2019 (12% of US businesses)
These businesses employed 16.3 million workers (12% of US employment)
These workers earned $809 billion (11% of US payroll)
Partnerships have grown in importance over time
Between 2009 and 2019, employment at partnerships grew from 11.5 million workers to 16.3 million workers
Additionally, the share of US employment at partnerships grew from 10% in 2009 to 12% in 2019
Manufacturing partnerships are a significant share of US manufacturing
There were 33,000 manufacturing partnerships in 2019 (14% of US manufacturing businesses)
These businesses employed 1.1 million workers (9% of US manufacturing employment)
These workers earned $57 billion (8% of US manufacturing payroll)
Manufacturing partnerships have grown in importance over time
Between 2009 and 2019, employment at manufacturing partnerships grew from 863,000 workers to 1.1 million workers
Additionally, the share of US manufacturing employment at partnerships grew from 7% in 2009 to 9% in 2019