Taxes For New LLC

[Ryan O.]

I tried to search BP for an aswer to my tax question to no avail, so I'm hoping to get some answers by posting here.

In 2012 myself and a partner rehabbed and sold 1 property in our own names, did well, and decided to make a business of it. After the property was sold we decided to form an LLC (Oct 2012). Should we file 2012 taxes in the entities name or our personal names. I understand that ultimately the income will flow to our personal returns, but for the purpose of the partnership return and 1099's should they be in the entities name or not?

[Steven Hamilton II]

Hello Ryan O.,

By operating as partners whether legally formed or not you by even spoke word have arranged a partnership.

You essentially had two partnerships this year. One was a General partnership. That was started the moment you began business together.
The Second is from your LLC. Which came to be once you organized the LLC.

You will have to file Form 1065. You will issue 1099's from the EIN of the partnership. Get one if you Don't have one. In this case you would have a part year partnership in addition to the general partnership. If the LLC did not have any taxable activity(Income or expenses) you will not have to file a return for that partnership.

By the way, I'm near Gurnee. Feel free to ask if you have any questions.

-Steven