Hello - very happy to have found this forum! My husband and I formed an LLC with my brother and his wife in April, 2012. My husband, brother and I had been in a different business for 3 years and it went very well. The new LLC did not. As soon as the first disagreement happened (July 2012), my sister-in-law quit and my brother had to quit as well (if he wanted to stay married). Their investment in the business was $3,000 and ours $1,000. The agreement was each member owned 1/4 of the business. For 2012, there was an $8,000 net loss. They want their $3,000 back which I am giving them this month. My husband disagrees with giving them the whole thing back since the $4,000 was for education to start our business, and they do still have the knowledge that we paid for. however I want to keep the peace and it's worth more than $3,000 to me. I want to claim the whole loss on my 2012 tax return.
I have talked to the IL Sec of State re: removing them from the LLC and I will take care of that (I realize it should have been done a long time ago).
Question:
Do I need to hire a lawyer?
Taxes: I file my own on turbotax and was planning on filing using Tubotax business so I can do the partnership taxes.
Can I create the Form 1065 to show my husband and I each owning 50% and my brother and his wife owning 0% so that they have no tax consequences?
Thank you for pointing me in the right direction. Unfortunately, as you hear a lot, this has caused many problems in the family. I think once they get their money back though, thing may improve.
Bookmarks