My husband started a new limited liability company with a partner. Before that he worked for an employer and received a W-2. Does he need to file two different returns?
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Your husband is indeed required to file two returns (and so are you, unless you file jointly). He will need to account for both his share of the partnership’s earnings and the W-2 wages he earned on his individual tax return, says Charles A. Wry, Jr., a business attorney in Waltham, Mass.
Unlike owners of a corporation, partners in limited liability companies, or LLCs, are not considered employees and therefore don’t receive W-2 forms. Instead, they are required to report the firm’s income, deductions, gains and losses on a partnership return,
Form 1065. They also must include the partnership’s income or loss on his tax return,
Form 1040 and Schedule E. This information is found on a partner’s