The Partnership return is a Form 1065. Form 8825 is one of the forms that goes with the partnership return. It is the "Schedule E" of the partnership return. The partnership return will, in turn, generate 2 schedules K-1. This is the form that each of you will use that will report what is necessary for each of your personal returns. The 50-50 split will have already been made. Neither of you will have to file an additional Schedule C or Schedule E unless you have other self-employment or rental income that is separate from what you earn together as a partnership.
It is okay legally to have set up an LLC. I hope you didn't gather from me that doing so was wrong; it's not. I only meant that having an LLC doesn't mean that you're not a partnership.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
