DH has been offered a partnership in an LLC (limited liability company). We hired a corporate transactional attorney to review and advise us on the operating agreement, which has been deemed "very fair" and we understand it. If he accepts the offer, it will take effect before year-end 2012.
I have three referrals for tax professionals (two definitely do corporate taxes; not sure about the third). Before I contact them, I want to be a little more educated. I went to the IRS website and looked up Schedule K. There are a few of them and they didn't include what I was expecting to see. My understanding is the tax-related aspects of the partnership pass through to the partners at their respective percentages of ownership. What are some of the tax advantages to this arrangement? I didn't see anywhere to report expenses that would lower the profits/income. Schedule C says sole proprietorships and Schedule E led me to believe it was for real estate-related companies, which is not the case here. I'm looking to find what we should be recording/doing in ADVANCE of filing. Plus, I believe we will then be subject to quarterly estimated tax payments, although I hear that can wait until the IRS requires it.
Meanwhile, I am also wondering if DH will be able to contribute to a retirement plan more aggressive than an IRA/Roth IRA (in terms of contribution limits). His company does not offer a 401k and neither will the partnership. We currently both contribute to our IRAs. If he is able to open a form of 401k, will I still be able to contribute to my IRA?
Any links or tips are appreciated. Thank you!