Do we need to file together for a start of business me and my daughter?

[HelenC12 · Accepted solution]

Please clarify what business type or entity do you have? Is it a sole proprietorship, an LLC, a partnership, an S-corporation, or C-corporation? The entity you have will affect how your taxable income flows through to your personal tax return(s).

[deltadawn58]

It is an LLC

[GeorgeM777]

To follow-up on the comments from @HelenC12, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation.  Thus, with regard to your question, if you decide to remain a partnership, you will complete a Form 1065, which is an informational return because partnerships do not pay taxes.  You may have heard people use the term "pass through entity" to describe a partnership for tax purposes.  That term, PTE, is used because partnerships "pass through" their income and loss to the partners.  Thereafter, the partners pay tax on their respective income, and/or gain from the partnership.  

After completing your Form 1065, which you can do in TurboTax Business,  the partnership then issues a Schedule K-1 to each partner (you and your daughter), and then the partners use their Schedule K-1 (partnerships don't issue a W-2 to partners) to prepare their separate tax returns.    

@deltadawn58