In addition to my question, please be advised that my partner and I have not filed any taxes for Etsy yet as this was our first year in business. By filing through turbo tax, does this count as paying the taxes?
I have a 1099K from Etsy and my own record of revenue, cost of goods sold and profit. Is this all I will need?
As noted in my question, we received one 1099K from Etsy but the income was then split between me and my partner. Do I write down half of what is mentioned on the 1099K?
You can report your multi-member LLC as a partnership, and you would enter the total of the 1099-K and all appropriate deductions on the Form 1065 Partnership Tax Return.
Included in the partnership return would be the Form 1165, Schedule K-1's (each partner's share of income and expenses), one of you and one for your partner.
Each of you would report the information from the K-1's on your respective individual tax returns.