Bob, thanks for replying.

1. Yes, the IRS taxpayer service rep was referring to two people who are not married but living together when talking about a domestic partnership. Don't want to make any Jerry Lee Lewis jokes here, but my sister and I don't qualify for the "domestic partnership" exclusion.

So yes... we do need to file a Form 1065????

2. Insurance will be in the name of the LLC.

3. Already filed a BOIR with finCEN.

4. Yes, NJ has some type filing so they can gouge us $75. Not due until September.

5. Yes... my wife will get stepped up basis for my 50% ownership.

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Question... would you file Form 1065 if you were me?  If yes, would you prepare a Balance Sheet or leave everything $0?