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Idaho Limited Liability Partnership

This is common venture for Idaho investors, that want to pool their means to put a venture together, or for friends and/or family that want to start a business.

If you’re going to form an Idaho partnership, you NEED to follow some formalities. Most Idaho partnerships are between friends, family, or acquaintances, which makes it even more important to get the details out in the open and down on paper to help keep your relationships at the level they were before you start your business.

The following formalities should be taken:

  1. Decide how decisions will be made.
  2. Decide how profits will be shared, and what profits will be put back into the business.
  3. Decide how disputes will be resolved.
  4. Decide how future partners will be added.
  5. Decide how partners will exit and be bought out, if they want.
  6. Decide how the time needed to run the partnership will be divided among the partners and how they will be compensated.

These details are much like a general partnership, but give the individual partners some liability protection.

The following are some of the forms you will need with the IRS:

  • 1065: Partnership return of income
  • 1065 K-1: Partners share of income, credit, deduction
  • 4562: Depreciation
  • 1040: Individual income tax return
  • Schedule E: Supplemental income and loss
  • Schedule SE: Self-employment tax
  • 1040-ES: Estimated tax for individuals