I have a business tax question relating to partnerships

2020-04-16T06:34:50.804368+00:00
$0 Budget
Closed
partnership refunds tax tax return

I have a business tax question relating to partnerships. We had a business that provided healthcare services. My partner did not get an EIN (Texas), we only had a DBA. Since it was a part time venture, we had a net profit of $5700. Since we do not have an EIN and we havent declared our partnership, we did not file a 1065. Will there be any penalties for this? Do we need an EIN and filing of 1065?

5 Views
1 Answers
finance, law, accounts 2020-04-16T06:47:18.656748+00:00
Message

A general partnership starts as soon as you agree to run your business together. No contract is needed for that to qualify you for a partnership.

DBA allows you to use any name for your partnership, it does not create a separate entity.

As for EIN, you apply for it after setting up your partnership. Once it is assigned, the IRS becomes aware of your partnership. You can apply for an EIN online here https://sa.www4.irs.gov/modiein/individual/index.jsp so you can file.

You will need to file form 1065 if there were any business activities including income or deductions.

Hope that answers your question

Answer

Nothing to preview