Does this need a 1065 partnership return? This was formed and husband is the worker, but wife is listed as partner. As I read it, only a one member LLC can be a disregarded entity and file like a sole prop. Am I correct?
-
-
Yes, I agree with your conclusions. One LLC status is elected no more exceptions to filing form 1065. -
In this arrangement, the husband partner works and the wife is just part of the partnership, when I do the K-1's does she have to get a percentage, or ..could I give the husband a guaranteed payment of the money made, and then there would be no profit to divide. She could be a 50/50 partner without income or loss. Her K-1 would show no income. Is there a problem with that? I guess it wouldn't be a partnership if she wasn't a partial owner.Comment
-
They should have an operating agreement, which spells out the % of ownership and how profit, losses, credits are allocated. They don't have to follow the % of ownership.
If only hubby does the actual work then he should receive a guaranteed payment which also should be documented.Comment
Comment