LLC or general partnership?

General Real Estate Investing
1

I understand the chose is really related to taxes and future plans, but let me explain this situation and what I want.

First off, I paid someone years back to start a LLC. It wasn’t fully followed through, which I didn’t know, since I let someone else handle it. Anyway, the article was filed, but that’s about it. I do not believe it even has an EIN. Well, it wasn’t used anyway, but shows up delinquent. Do I revive it back to good standing, amend the article for address change, draft an operating agreement, and get an EIN?

All I really want at this time is a DBA name, and it will be just me and my wife for a bit. So, should I just leave that LLC alone and file for a general partnership? I believe you need an EIN if there’s more than one person, and then you both file Schedule K’s, but what if filing jointly?

So, for an overview, revive the LLC or just register a general partnership? And how are the taxes filed?

2

Taxes are moot. An LLC can be taxed as a partnership. The big difference is that the general partners are personally responsible for partnership debt. Depending on the state, LLC members are only responsible for their own actions.

You can reinstate the LLC if you want, but I think it would be cheaper to create a new one. Most states will require you to file all the missing annual reports (which is $500/yr in some states plus late fees).

If all you want is a DBA, then get a DBA.

3

Thanks, I was wondering about the costs of reinstating the LLC. I’ll just stick to getting a DBA as a partnership then.

As far as taxes, I found this: http://www.irs.gov/businesses/small/article/0,,id=177376,00.html

As of 2007, husband and wife businesses that are not a corp or LLC can report taxes as a qualified joint venture and both fill out a Schedule C with the joint tax return, not needing an EIN then, since it’s counted as a sole proprietorship for both spouses for tax purposes.