You can report
your multi-member LLC as a partnership, and you would enter the total of the 1099-K
and all appropriate deductions on the Form 1065 Partnership Tax Return.
Included in the
partnership return would be the Form 1165, Schedule K-1's (each partner's share
of income and expenses), one of you and one for your partner.
Each of you would
report the information from the K-1's on your respective individual tax returns.
