This year I have incurred in costs regarding the business in order to reach clients and do sales. The investment to the business has been pretty low and no revenue has been generated yet. I do not know if I should file the normal way or I should do anything special since I am a partner in this LLC. I do not know if I get any tax benefits because of it.
The IRS assumes that LLCs with more than one member are partnerships for tax purposes. That means the LLC itself pays no tax, but taxable profits and deductible losses are passed through to the members, who are treated as partners under the tax rules.
So at tax time to keep the IRS happy an LLC files Form 1065: Partnership Return of Income. The annual Form 1065 must also include a Schedule K-1 for each member. Schedule K-1 reports the member’s share of LLC income, deduction, and tax credit items. These amounts are then included on the member’s personal tax return. You will need TurboTax Business software if you are going to file a Form 1065 and issue K-1s to you and your partner.
You can use any version of TurboTax for your personal return with your W-2 job. However, if you intend on filing a K-1 from the partnership LLC, you will need Premier or higher for your personal tax return.