Partnership to share the risk.

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 A partnership is not technically considered to be a tax-exempt entity. However you will still need an annual return. However, you are taxed jointly on the income you earn from the partnership.

 Individual tax returns. The partnership model has some advantages, such as sharing the cost of the business's creation and not having to pay income taxes.

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 It's an association. You are still responsible for the debt of your partner and should trust that you will pay it.

 LLCs for Artists

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 An LLC (limited liability corporation) is an established business entity that is popular among artists.

 Owner-- and the tax advantages of being partners. The LLC must be registered in the state where you live to create an LLC. Similar to the partnership.

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 Multiple owners are able to "pass through" the LLC, which will allow owners to pay their own taxes on the earnings they make.