Question

How to file taxes for a dissolved 2 member LLC

Forum|Forum|7 years ago
October 31, 2018
1 reply
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My former partner and I had opened a business in March 2018. He had abandoned the business and I had dissolved it as I could not do everything else. Due to his abandonment and other personal reasons, he refuses to talk to me. How should I go about filing the business tax return for 2018?

Carl11_2

What state? Did the business make a profit during the few months it was open?

A

Amino123Author

CT, The business made a small profit

Carl11_2

Then yes, a 1065 partnership return is required to be filed, and each owner will be issued a K-1 which each owner will require in order to complete their personal 1040 tax return. so the 1065 partnership return must be completed and filed before the owners can even start their personal returns. The deadline for filing the partnership return and issuing all K-1's is March 15th.

Now in your case, I would *HIGHLY* advise you seek the services of a CPA for the partnership return, since it will be both the first year of business, and the final year of business. This combined with the fact that you are not on speaking terms with the other partner will help to protect you on the legal front, should the other partner refuse and not report their K-1.

Since CT also taxes personal income, not doing this right can cause issues with both the IRS and the state. So protect yourself and seek the services of a tax professional in CT for the partnership return. Once you have your K-1, you can complete your personal return with no problem. THen as for the other K-1 for the other partner, that won't be your problem "PROVIDED" you seek and utilize the professional services of a CPA for that 1065 return only.