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Level 3
posted May 11, 2024 8:34:16 PM

Form 1065 Schedule B - Type of Entity

Hi folks, there are two partners operating a business and it is organized in the state of Tennessee as a "Multiple Member-Managed Limited Liability Company".  

I am not sure whether to select "Domestic limited liability company" or "Domestic limited liability partnership" on Schedule B of Form 1065.  For sure, they are a partnership but as an LLC.  

 

I don't know the implications of choosing the wrong one.  Thanks up front for any guidance on this matter.

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1 Replies
Level 15
May 11, 2024 9:04:09 PM

select "Domestic limited liability company (LLC)" 

There is one significant difference between LLP and LLC. An LLP must have a managing partner that is liable for the actions of the partnership. As long as silent partners and investors don’t assume a managerial role, they receive liability protection.

 

as the terms are used an LLC has members but an LLP has partners - one or more general partners and one or more limited partners.