A couple of quick follow-up points:
- Make sure you read the link provided by @DoninGA regarding being able to file as a qualified joint venture. You need to understand how your LLC was set up. In particular, you need to focus on the second bullet in the IRS link provided.
- There are some differences in how you will pay yourself between the two options; one is a guaranteed payment, the other is just take out cash.
- Since you want to get started down the correct path, I recommend you make an appointment with a tax professional to explain the workings and differences between these two "entity" options
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
