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Revenue Sharing

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Revenue sharing has multiple meanings. Commonly, revenue sharing is used to describe when operating profits and losses are split between a general partner and limited partners under a limited partnership form of business ownership. Revenue sharing also refers to when operating profits are shared among a company's employees or when revenues are shared among companies that form some type of an alliance. A company that offers a revenue sharing plan can often recruit and retain quality employees. There are also many benefits that revenue sharing offers employees. Revenue sharing can help an individual build retirement security. Often, taxes on earnings can also be deferred until a revenue sharing plan pays benefits. Revenue sharing also pertains to the United States government, where a portion of tax revenues from one government body transfers to another.



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