The business will file it's own tax return - a partnership return. For that, you will need TurboTax Business, which is not the same as Home and Business. The business will file a partnership return and the business will issue each partner a K-1, as well as any other documents if any income was received by a human, from the business, that was not earned income. The partners can not file their personal returns until after the business has completed its partnership returned and issued W-2s and any other income reporting documents as appropriate. Additionally, under no circumstances will a partnership that is filing a 1065 partnership return, issue any partner or owner a 1099-MISC or W-2. All owner income will be reported on the K-1.
