Wondering if anyone can help with clarifying this statement from IRS Publication 541.
"An unincorporated organization with two or more members is generally classified as a partnership for federal tax purposes if its members carry on a trade, business, financial operation, or venture and divide its profits. However, a joint undertaking merely to share expenses is not a partnership. For example, co-ownership of property maintained and rented or leased is not a partnership unless the co-owners provide services to the tenants."
Does this not apply if we form an LLC? In other words, if we form an LLC with three members who own and lease a commercial property but don't provide and services for the property, can it still be a partnership organization for tax purposes? Thank you!
