I got some good info from my initial “yet more LLC questions”, so here’s part II:
I’m going to start an LLC to do some property flipping, and I want my father to have signing rights for the LLC as I’ll be out of state. I got the following good advice earlier:
“With respect to you father and the LLC, you just need to make him a manager of the LLC in the governing docs of the LLC. This will give him the authority to act on behalf ot he LLCs but is decoupled from how much of the LLCs profits and losses is broken out to him on the K-1 tax document.”
My question is what tax documents do I then need to file if I do this? I guess I won’t be considered a disregarded entity for tax purposes, so will the LLC then need to file its own tax form and then both me and my father filing the K1? I think it’s treated as a partnership in this case. Also, in this situation do I need to get an EIN for the business? I’m trying to keep it as simple as possible while allowing my father to sign on the account.