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If the LLC has two members, the default is to be taxed as being a partnership. That means a 1065 is filed on April 15th federally each week. If you business is earning earned income all of the profits are subject to self employment taxes last year which expires to $106,800. If always be taxed like a partnership and one partner isn't active (they work couple of hours or are just passive) their distributions usually will not be depending upon self employment taxes. Appropriate size tire to check with your CPA for exact input. For the one-owner LLC, you'll file a 1040 tax return and attach a Schedule G.
You don't require a couple of legalese things it legal. Use language you both can entirely grasp. Oh, and make sure you number the paragraphs so you'll be able to refer to specific clauses handily.
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