If you and your friend are both members of the LLC, the LLC is treated as a partnership for income tax purposes. That means that the LLC has to file it's own Form 1065 partnership tax return, separate from your personal Form 1040 joint tax return. The partnership return will include a Schedule K-1 for each partner. You each have to enter the information from your Schedule K-1 in your personal tax returns.
You cannot use TurboTax Online to prepare the Form 1065 partnership return for the LLC. You have to use TurboTax Business (which is not the same as TurboTax Home & Business). TurboTax Business is available only as CD or download software that you install on your computer, and only for Windows. Go to the following link for more information about TurboTax Business, and to purchase it.
TurboTax Business
The filing deadline for partnership returns is March 15, not April 15, and late-filing penalties are high. You can request an extension to September 15 if necessary.
