10yr old partner in an LLC? Dependent or partner?

Can my 10 year old son be my partner in an LLC?

If yes, what happens with the income he receives through the K1?

Can I still claim him as a dependent?

partnership dependent k-1

asked 10 Nov '09, 02:06

Reynol Cobre...
61●4
accept rate: 0%

edited 10 Nov '09, 02:57

TaxQueries ♦♦
1.8k●8●37●111

4 Answers:

oldest newest most voted

I agree, he can be a partner and you can claim him as a dependent. His share of income/loss will be passive. So any losses may be suspended. Any income will be taxed at your rate (after the $1800). Some people use this as a way to move assets (either cash or the "future value" of the LLC) out of their estate.

link

answered 10 Nov '09, 21:04

Boston CPA
21●1
accept rate: 0%

Thank you for the additional support!

(10 Nov '09, 21:58) Brent Berkman

Yes, a ten year old can be a member in an LLC, and can still be claimed as a dependent, however, Form 8615 is required for children under age 18 that had more than $1,800 of investment income, and the child will not be able to claim a dependency exemption on their own return.

link

answered 10 Nov '09, 03:41

Brent Berkman
3.1k●3●12
accept rate: 13%

1	I agree with the answers given by Brent and Boston CPA above and to further add. How did the 10 year old acquire the LLC interest? This may lead to a gift tax compliance issue. link answered 11 Nov '09, 17:42 Bill Loffred... 187●2 accept rate: 0%

0	What is he doing for the partnership? link answered 10 Nov '09, 03:18 Helen EA in PA 1.8k●2●4 accept rate: 4%

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