Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jan 30, 2021 6:06:29 AM

What do I file if my partner and I started a business as a partnership, we made close to zero earnings?. I was also employed 9-5 (day job), he was not.

We didn't use accounting software because we had very little customers, but kept track of most things the old fashion way. We have receipts,  used our cars, paid for web hosting, business phone, etc. We did all the work ourselves, so we had no employees. I called a few places and they said a business return is very costly, and I'm not sure what I'm doing. Also, when I applied for the EIN, it's a business EIN- do we EACH need an EIN or is one for the business ok, since there are 2 of us? I hope my question makes sense.

0 1 220
1 Best answer
Level 15
Jan 30, 2021 7:18:27 AM


@amari2179 wrote:
....a business return is very costly, and I'm not sure what I'm doing. Also, when I applied for the EIN, it's a business EIN- do we EACH need an EIN or is one for the business ok, since there are 2 of us? I hope my question makes sense.

Partnerships generally file Form 1065 (which is obviously a "business" income tax return). Having the return professionally prepare is costly but if you are not sure what you are doing, it is a necessity; trying to do it yourself the first time could wind up badly.

 

Your partnership only needs one EIN, not one for each of the partners.

1 Replies
Level 15
Jan 30, 2021 7:18:27 AM


@amari2179 wrote:
....a business return is very costly, and I'm not sure what I'm doing. Also, when I applied for the EIN, it's a business EIN- do we EACH need an EIN or is one for the business ok, since there are 2 of us? I hope my question makes sense.

Partnerships generally file Form 1065 (which is obviously a "business" income tax return). Having the return professionally prepare is costly but if you are not sure what you are doing, it is a necessity; trying to do it yourself the first time could wind up badly.

 

Your partnership only needs one EIN, not one for each of the partners.