Client's main business was real estate sales/brokerage. He continues that business, but has added a construction "division" to the company. He has income from both divisions, RE Sales Commissions and Construction Income. Can both of these operations be reported on the same Form 1065? Thanks for comments.
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Of course. In fact if both "divisions" are operated within the framework of a single LLC/partnership, it must be reported that way.
In the OP the taxpayer is referred to (several times) in the singular ... i.e. "he" ... but I assume there is at least one other owner/member/partner. If this is a single-member LLC, then it's a disregarded entity and would not file a partnership return, F-1065.Roland Slugg
"I do what I can." -
Thanks Roland G.
Sorry, it is a two partner LLC. Thanks for your response.Comment
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Are both partners and the firm licensed as real estate agents/brokers? And probably a different license is also required in the construction end, as well.Comment
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I personally would not let a client combine 2 types of businesses to be reported under 1 LLC. At the very least create another LLC and let it be a disregared entity LLC to be reported on the first LLC. 2 different liability issues exist that can bring down both operations.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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LLC Series
Maybe the client should consider forming an LLC Series if the plan is to open additional unrelated businesses.Circular 230 Disclosure:
Don't even think about using the information in this message!Comment
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