Lucho Posted September 19, 2011 Report Share Posted September 19, 2011 Couple filed 2010 return reporting income from a business own by husband (sole proprietor. For 2011 they want to file as a partnership which will also include the parents of one spouse as partners. My thinking is that all they had to do is to draft the partnership agreement, get it notarized and wait for next year tax season to prepare K-1s for partners and file 1065 to the IRS. Or does it make a difference the fact that is almost the end of the year. May be a silly question, but in taxes there always something new to discuss. Thank you for any help. Grandpalu Quote Link to comment Share on other sites More sharing options...
OldJack Posted September 19, 2011 Report Share Posted September 19, 2011 Maybe a good idea to have an agreement notarized but for federal tax purposes it is not necessary. Partnership status requires a federal and state tax identification numbers. The partnership records have to be set up with transfer of any assets, such as cash bank account and vehicles. Determine each partners beginning tax basis in the partnership. Maybe a local business license or permit. Sales Tax number and Unemployment tax number if applicable. Although not necessary, unit of ownership certificates (like stock certificates) can be issued so each partner has paper proof of his share of ownership. Quote Link to comment Share on other sites More sharing options...
Lucho Posted September 19, 2011 Author Report Share Posted September 19, 2011 Wonderful! Thank you very much OldJack, I ppreciate your help one more time May God blesses this forum and members. Lucho Quote Link to comment Share on other sites More sharing options...
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