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cmdr-n-mrs-stewi
Returning Member

Mother and adult daughter share ownership of the LLC, how do we file taxes? Is this considered a multi-member LLC or can it still be considered an single member LLC?

Our daughter is in separated and in the process of getting a divorce. She has a different last name than her mother. She and her autistic son have been living at home with her mother and father, who provides the majority of support for both of them. The daughter will be filling her last tax report with her soon to be 'ex'-husband this year.

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Accepted Solutions
AmandaR1
New Member

Mother and adult daughter share ownership of the LLC, how do we file taxes? Is this considered a multi-member LLC or can it still be considered an single member LLC?

Even if the LLCs two member are mother and daughter or husband and wife, the entity is still a Multi-Member LLC, if the LLC has two+ members. Even if you qualify to claim her and your son as a dependent (which it sounds like you might), it does not effect the LLC. 

The IRS did not create a tax form for the LLC. Multi-member LLCs default to be taxed as a partnership, while single member LLCs default to be taxed as self-employed. A single member LLC has less administrative burden when it comes to taxes. 

The partnership form 1065 is due by March 15th and provides a schedule K-1 (1065) to each partner. They'll need to include the K-1 with their taxes. You can use TurboTax Business software to do this return, which can be found here: https://turbotax.intuit.com/small-business-taxes/

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2 Replies
Lisa995
Level 12

Mother and adult daughter share ownership of the LLC, how do we file taxes? Is this considered a multi-member LLC or can it still be considered an single member LLC?

When they applied for the EIN for the LLC did they apply as a multi member LLC or a Single Member LLC?
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
AmandaR1
New Member

Mother and adult daughter share ownership of the LLC, how do we file taxes? Is this considered a multi-member LLC or can it still be considered an single member LLC?

Even if the LLCs two member are mother and daughter or husband and wife, the entity is still a Multi-Member LLC, if the LLC has two+ members. Even if you qualify to claim her and your son as a dependent (which it sounds like you might), it does not effect the LLC. 

The IRS did not create a tax form for the LLC. Multi-member LLCs default to be taxed as a partnership, while single member LLCs default to be taxed as self-employed. A single member LLC has less administrative burden when it comes to taxes. 

The partnership form 1065 is due by March 15th and provides a schedule K-1 (1065) to each partner. They'll need to include the K-1 with their taxes. You can use TurboTax Business software to do this return, which can be found here: https://turbotax.intuit.com/small-business-taxes/

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