What is the tax filing status of a joint venture?

The tax filing status of a joint venture operating in Oregon depends on the type of business entity the joint venture establishes. In Oregon, common business entities include corporations, partnerships, limited liability companies (LLC), and sole proprietorships. If the joint venture opts to form a corporation, then the venture must file a corporate income tax return each year. The Internal Revenue Service (IRS) considers a corporation to be a separate legal entity, and as such, it must file its own federal and state tax returns. If the joint venture chooses to establish a partnership, it must file Form 1065, U.S. Return of Partnership Income, each year. The form must include the incomes, gains, losses, deductions, and credits of all partners. On the partnership’s return, each partner is reported their own income and deductions based on their partnership agreement. LLCs are taxed similar to partnerships. An LLC is required to file a partnership tax return, like Form 1065. However, some LLCs choose to be taxed as a corporation and must file the appropriate corporate tax returns. Lastly, if the joint venture chooses to establish a sole proprietorship, then the venture’s income and losses will be reported on the owner’s personal tax return. The venture’s profits and losses get included each year on the owner’s Schedule C, Profit or Loss From Business, and Schedule SE, Self-Employment Tax.

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What is the tax filing status of a joint venture?

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