My mom and I recently opened a new small business. It’s an LLC Partnership. She basically owns and operates the business, and I’m a partner only by name because in order to apply for an EIN I had to put my SSN for the business. I don’t make any profit from this business. So I’m a bit lost on how to file. Like can I file my personal taxes separate from the business or how do I got about filing taxes this year.
My mom and I recently opened a new small business. It’s an LLC Partnership. She basically owns and operates the business, and I’m a partner only by name because in order to apply for an EIN I had to put my SSN for the business.
With your SSN tied to the EIN, that means "YOU* are the primary responsible party for the business.
I don’t make any profit from this business. So I’m a bit lost on how to file.
A partnership is required to file it's own physically separate IRS Form 1065 - Partnership Return.
Like can I file my personal taxes separate from the business or how do I got about filing taxes this year.
Neither of you can even start your personal 1040 tax return until you have completed and filed the 1065 Partnership Return and all K-1's have been issued to each owner. Each owner will require the K-1 in order to complete their personal 1040 tax return.
So first, you have to complete and file the 1065 Partnership Return. That return is due to the IRS by March 15th. The late filing penalty for the partnership return is $200 per month, per owner. So file on March 16th and the penalty is $400. So don't be late.
To complete the 1065 Partnership return you will need to purchase TurboTax Business (different from Home & Business). TurboTax Business is not available as an online product or for MACs. It's for the Windows platform only. You can purchase it at https://turbotax.intuit.com/small-business-taxes/
Use TurboTax Business to complete and file the 1065 return, and to complete and print the K-1's you are required to issue to each owner.
Now even if you have no income from the Partnership, since your SSN is tied to the EIN, you will be required to include the K-1 information on your personal tax return. If you don't, you'll get a nasty gram from the IRS asking you for it, and assessing fines for having not included it in the first place.
seek professional help. a partnership must have at least two owners. with multiple owners there is some sort of split in the income or loss the partnership has. it's apparent you and maybe your mom have no clue as to the tax laws governing a partnership. that is if, in fact, you have a partnership.