GeorgeM777
Expert Alumni

Get your taxes done using TurboTax

To follow-up on the comments from @HelenC12, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation.  Thus, with regard to your question, if you decide to remain a partnership, you will complete a Form 1065, which is an informational return because partnerships do not pay taxes.  You may have heard people use the term "pass through entity" to describe a partnership for tax purposes.  That term, PTE, is used because partnerships "pass through" their income and loss to the partners.  Thereafter, the partners pay tax on their respective income, and/or gain from the partnership.  

 

After completing your Form 1065, which you can do in TurboTax Business,  the partnership then issues a Schedule K-1 to each partner (you and your daughter), and then the partners use their Schedule K-1 (partnerships don't issue a W-2 to partners) to prepare their separate tax returns.    

 

@deltadawn58

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