AlanT
Expert Alumni

Business & farm

Yes, you can have a partner with 0% interest.  There are no federal guidelines for the establishment of partnerships and therefore no minimum interest amount that a partner can have in a company.

However, I would suggest that if your daughter is no longer going to be a part of the business, you prepare the final 1065 and become a single member LLC.  Then you can report the business on Schedule C of your personal return, thus eliminating the need to file two income tax returns.  

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