Q: Should I file my business taxes as a Partnership or as a Corporation, if i plan to file bankruptcy?
The business is listed as a 2-member LLC. I do not want the other member to be negatively affected by my bankruptcy.
A: The issue that affects your business partner is whether the bankruptcy trustee will want your interest in the business. That depends on the value of the business versus any exemption that might apply. You need to file your taxes based on what you elected at the time of formation or prior to filing your initial return.
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