I'm afraid the other poster who tried to answer your question gave you inaccurate & incomplete information. Having a separate tax ID# has no bearing on how your profits are taxed.

If you are a partnership for tax-reporting purposes, you will be taxed on your profits whether you distribute them or not. So you & your partners will pay tax on the money you take out of the business as well as cash you choose to leave in for next year's operations. A partnership does not claim any deduction for payments made to partner/owners.

The issue of year-end planning to shift income to lower tax rates does not apply to a partnership either. Your accountant can help you at year-end by checking to see if you have enough tax paid in for the year. You have until Jan 15th to make your final quarterly tax esimate for 2007, so you still have time.