I am in a partnership (LLC) started last year. It is 50/50 on equity interests, but the profit interest has my partner recveive 100% and me 0%. How should I report the company's income on my tax return? Do I have to report anything since I didn't receive any of the profits?
You report based on your partnership agreement; nothing else matters. If the net income goes to one partner then report that on the partner's K-1.
Based on the limited facts, I certainly hope that you received professional advice when drafting your LLC operating agreement.
Any LLC taxed as a partnership that is allocating the results of the LLC on anything other than your equity interest, needs to pass the extremely complex provisions of Section 704(b) of the regulations. This area is not for the feint of heart.
Subject to the other provisions of this Agreement, the Net Profits or Losses of the Company, for both accounting and tax purposes, will be allocated between the Members in the following manner:
Member 1: 100%
Member 2: 0%
Distributions to Members will be made in the same fixed proportions as the allocation of Net Profits or Losses described above.
No Member will have priority over any other Member for the distribution of Net Profits or Losses.