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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15443
Experience:  15years with H & R Block. Divisional leader, Instructor
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My business partner and I formed an LLC in South Carolina today. My

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My business partner and I formed an LLC in South Carolina today.
My partner live in Bangladesh and is not a USA resident. I was born and raised in America.

My partner owns 40% of the company and I own 60%.

South Carolina wants to know if we are filling out a 1040, 1065 or 1120 for tax purposes.

My partner will probably not get paid through the company, probably direct through our clients. I will be filling my income and right offs for the LLC.

I don't think we will be profitable or sharing profits for at least two years from now.

What form should we telling South Carolina we will be filling?

Robin D. :

Hello and thank you for using Just Answer,
A domestic LLC with at least two members is classified as a partnership for federal income tax purposes. A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
Partners are not employees and should not be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partners by the date Form 1065 is required to be filed, including extensions.

Robin D. :

A partnership (U.S. or foreign) with foreign partners could be responsible for complying with other filing requirements. You may want to read over the following
http://www.irs.gov/Individuals/International-Taxpayers/Helpful-Hints-for-Partnerships-With-Foreign-Partners

Customer:

hi

Customer:

Robin

Customer:

okay

Customer:

so

Robin D. :

Hello

Customer:

form 1040 is out

Customer:

so we want a 1065 or 1120?

Robin D. :

You will still file the 1040 because you will need to report your partnership income or losses

Robin D. :

You cannot have an S corp with a foreign partner.

Robin D. :

Your partnership will file the 1065

Customer:

k

Customer:

so i still file 1040

Customer:

business files 1065

Robin D. :

and issues K1s to you and your partner

Customer:

whats a K1?

Robin D. :

That is the reporting doc for the income and losses of the partnership to each partner

Customer:

my partner doesnt have ss#

Robin D. :

A partnership files but it still passes all losses and income to the partners

Customer:

does that matter

Robin D. :

Yes

Robin D. :

He needs to get an ITIN then

Customer:

since the LLC with have a federal tax id

Robin D. :

individual taxpayer identification number

Customer:

what the link to get him an ITIN?

Robin D. :

One sec..........

Robin D. :

You or your accountant will want to look over the first link I sent you too

Robin D. :

It tells all aboout what the partnership may have to do because of the foreign partner

Customer:

k

Robin D. :

I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
You will find the request feature when you come back under your MY QUESTIONS section.

Customer:

k

Customer:

thanks Robin

Customer:

have a good night

Robin D. :

Your positive rating is always thanks enough.

Robin D. :

You too

Customer:

what state do you live in?

Robin D. :

GA

Customer:

you ever been to charleston, sc?

Robin D. :

Of course

Customer:

nice right

Robin D. :

Very

Customer:

can i ask be unprofessional for a bit

Customer:

you married?

Customer:

you very attractive

Robin D. :

Yes

Customer:

k

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.


 

Customer:

still very attractive, lol

Customer:

i understand

Customer:

thanks

Robin D. :

Thank you

Customer:

just asking, never hurst

Customer:

take care

Customer:

thank you again

Robin D. :

You are most welcome.

Robin D. and other Tax Specialists are ready to help you