topic LLC started as a partnership, then we married. How do we file? in Business & farm

LLC started as a partnership, then we married. How do we file?

AprilK11 — Sun, 06 Feb 2022 17:24:09 GMT

We started a small business September 2020 and were 50/50 partners. We used 1065 for filing that year. We married July 15 2021 but filed for dissolution July 8 2021. We were late on sending the disolution document in and it was not processed until the end of September 2021.

How do we file now that we are married since we are in NC and it could be either 1065 or 1040 schedule C.

Thanks!

Re: LLC started as a partnership, then we married. How do we file?

Rick19744 — Sun, 06 Feb 2022 18:17:10 GMT

Not sure where you are getting your information, but a married couple that are joint owners in an LLC are required to file a partnership return form 1065.

The only exception would be if you were in a community property state, of which, NC is not one of those.

You need to continue to file the form 1065 based on your current facts.

Re: LLC started as a partnership, then we married. How do we file?

Mike9241 — Sun, 06 Feb 2022 18:26:26 GMT

because we have no info about the LLC, this may be incomplete

you had a partnership return due for 2021. since it was liquidated in September the return was due on or about 12/15/2021. it is now 3 months late. penalties for late filing are about $400/month.

the LLC would report operations through the date of dissolution. after that, if it was a business other than a rental activity. each of you would need to complete a schedule c for the period from the date of dissolution through 12/31/2021 or two schedule e's if rental real estate.

Re: LLC started as a partnership, then we married. How do we file?

Rick19744 — Sun, 06 Feb 2022 19:05:11 GMT

You need to get some professional advice.

While you may have "dissolved" for state purposes, you still have a partnership for federal income tax purposes when there are two or more persons who join to carry on a trade or business.

You can have joint owners of property classified as tenants-in-common for legal purposes but still be classified as a partnership for federal income tax purposes.

There are too many unanswered questions, the biggest of which is what you want as a structure, to address everything in a forum such as this.

But at the moment, I believe you still have a partnership return filing requirement.