| “I recently created an LLC in New York. There are two owners, no employees and it operates as a partnership. What types of taxes will I be expected to pay and when do I have to file them. “---->Your MMLLC, as a partnership, must file an annual information return. Form 1065, to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it passes through any profits or losses to you and your partner. Each partner includes his /her share of the partnership's income or loss on his or her tax return. Partners are not employees and should not be issued a Form W-2. The partnership must furnish copies of Sche K-1of Form 1065 to the partners by the date Form 1065 is required to be filed, including extensions. So, at the end of each year, each partner of your MMLLC has to file a tax return on the business's income as well as your earned income from the business. The 1065 and Sch K-1 work together in that the 1065 tells the IRS as a whole what your MM LLC did over the year and the K-1 is what the partners, each of you as partners, uses to report his/her share on their personal tax return on 1040.So, you need to report on Form1065 the amounts attributable to each partner will be reported on the Sch K1 that has to be prepared and submitted with the 1065.You will need to first fill out the 1065 and submit that to the IRS. Then you will have to fill out a Sch K-1 for yourself and your partner and report it on 1040 for your return with the IRS. Your MMLLC doesn’t pay FICA tax for its partners UNLESS the MMLLC employes EEs. You, as a partner in the MMLLC, must pay your own FICA taxes on Sch SE as well as your own income taxes. You must submit their own 1040-ES to the IRS on a quarterly basis for your taxes.Internal Revenue Code provides penalties for a partnership that does not timely file a tax return. Reg. says that a partnership does not have to file a return if there is no activity. However, this only references a partnership, MMLLC .
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