Taxing a LLC

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My Client and his wife just had a attorney sign them up for a LLC. Also named in this LLC is a brother and all income and expenses are spilt 50/50. The attorney told them that they did not have to file any different tax return than they always have. (1040). I thought that because they have a third party on this LLC they have to file a partnership return. Can't seem to find anything that says different. Attorney says they don't know anything about taxes. Can anyone clarify?

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qbteachmt

Level 15

You should already know this, as a tax professional. No offense, but it's scary to read a basic question like this. Do you use IRS resources? Google:

irs llc filing

And read the IRS results in that list.

And how do three people split 50/50, anyway? Also, be aware of bad reasons to form an LLC. Perhaps that is bad guidance from that lawyer. It happens all the time. Why do they want an LLC? What has the brother got to do with this? What is the intended operation?

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R

RTS1823

Level 3

Sounds like a partnership to me, but you need more information with how the brother got involved. Attorney is correct when he says he doesn't know anything about taxes.