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sounds like you created a partnership when you were added so you would need to file a 1065 with k1 forms to each of you. I don't do many partnerships so someone else can confirm this for me.
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IRS requires two things when going from a single member LLC to a multi-member LLC (MMLLC)
1. approved articles or organization from the state
2. Form 8832
IRS used to allow the 8832 by itself. going through this right now.. We sent in an 8832 and IRS says they need amended articles.
A MMLLC files a 1065
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With out all of the details it sounds like they have a parnership, and would file 1065 with a k1 going to each of them
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@Jim-from-Ohio wrote:
IRS requires two things when going from a single member LLC to a multi-member LLC (MMLLC)
1. approved articles or organization from the state
2. Form 8832
The IRS does not need the Article of Organization, unless it is being audited and the auditor wants proof that it is a Partnership.
Form 8832 is not needed to be taxed as the default tax status (assuming no elections have been previously made to make an LLC taxed as a corporation). Form 8832 would never be needed to go from a Disregarded Entity to a Partnership.
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That is what I always thought but I went to efile a MMLLC extension that used to be a SMLLC and it got rejected.. called the IRS.. that is what they told me. they need 1. amended articles 2. 8832
Just relaying what they told me