Does an LLC mgr owning 0% shares file?

[Yomny]

My father recently opened a small business LLC and listed me as a member (manager) so I think this makes it a multi-member LLC.  While he owns 100% of the shares, i'm concerned I'll still be responsible for filing taxes even though I will not be making any money.  

I don't get paid, I will not receive any part of the profits he just listed me.  Would it be better to amend the articles and remove me or it doesn't hurt?

Info on me - married filing joint and have a regular 9-5 W2. 

[Irene2805]

It sounds like you are more of an employee of the LLC (except for the not-getting-paid part).  Since your father has 100% of the ownership it sounds like a single-member LLC.  I suggest you get a legal opinion on the documents to see what your responsibilities and liabilities are.

[Yomny]

In order to clearly express the ownership, the articles of organization would have to stipulate my father owns 100% shares? 

Would you or anyone be able to point me in the right direction (forum to seek legal LLC tax advise) . I’m trying to clarify these things to avoid a tax mistake. Poor fellow just listed me there thinking he was helping me out. 

Thank you. 

[DavidD66]

Your dad needs to amend the Articles of Organization to remove you.  If you dad owns 100%, then it is a single member LLC, and is a disregarded entity for tax purposes.  As such, you dad will report the business income and expenses on Schedule C as a part of his personal tax return.  He should not file a Form 1065 - Partnership return.   

[Yomny]

Truly appreciate your input. Seems its best to amend the articles as stated.  Say we somehow think it'll be beneficial to remain a member.  A form 1065 is filed by the owner filing taxes (my father ) and I would get something that I could include in my personal taxes?  

[DawnC · Accepted solution]

Yes, if you are also a member of the LLC, then the LLC would need to file a Form 1065, U.S. Return of Partnership Income.   Then the LLC issues K-1 documents to each member that reports their share of income.    As stated above, a single-member LLC is considered a disregarded entity and the owner of such business can claim all business-related income and expenses on Schedule C of their Form 1040.  

If your dad owns 100%, it sounds like a disregarded entity to me, but if he has you listed as a member, then technically, the LLC is a partnership and would need to file the business return.  

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations.  Check the documents and with your state's regulations.  Owners of an LLC are called members.  Most states do not restrict ownership, so members may include individuals, corporations, other LLCs, and foreign entities.  There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.

Limited Liability Company (LLC)  - This is an IRS link for general LLC taxing information, but to change anything on the LLC registration, you have to go through the state office, not the IRS.