Tavo
Level 2
10-16-2020
04:52 PM
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Thank you for your help! I think I figured this out. It boils down to this: an LLC with only one member is treated as a sole proprietor for tax purposes, so in essence, the income (1099) has been reported to the EIN of one of them who then makes a 1099 for the other person and they each have been doing their tax preparation as sole proprietors, each preparing a schedule C.
For some reason they registered with the secretary of state as an Limited Partnership, but they really are not a Limited Partnership since the limited member has been working just as the general member....
Thank you for all your help.