LLC partnerships and taxes on gains
Hello BP, I have a question about LLC partnerships and tax ramifications. I want to create an LLC to hold title to a house we have under contract. We intend to flip the house. My husband and I both have w2 jobs and so, we should avoid being taxed for self employment on any gains. But we are partnering with my brother and wife on the project. My brother doesn't work but his wife does. I understand that if you set up an LLC and one partner is considered a dealer "self employed", then the entire LLC has to be taxed as self employed. Is this correct? Will this be avoided if both my brother and his wife are included in the llc since she has a w2 job?