Yes, you are correct. The “owners” in a LLC are called members, thank you. But nonetheless, my question remains? How does one prepare a 1065 (or multiple 1065’s) to account for the fact that this General Partnership converted to an LLC during the tax year? The tax treatment of the members/partners changed mid-year. The husband went from being a general partner to a member-manager. In his case, all net income was subject to SE tax both before and after the conversion. But the wife went from being a general partner to a limited member, which means that she was subject to SE tax during part of the year, but not during the second half.
