1. Yes, it is partnership between the two of us. There are a couple others who contribute a bit but they aren't part of the business per se.
2. Our name would sound good with a LLC on the end of it. :)
3. To be honest we haven't made any money for ourselves and any revenue we have generated has been put back into the business. However, that will be changing soon as we are past a majority of the expenses and should have some actual income here soon.
4. 2014 is the first real year of the business and the first time we have been paid any money so nothing has been reported yet--we also haven't kept an official tally of expenses but it would be easy to do that since almost everything was purchased online so I can find receipts. At worst, I'll take the small hit on my taxes (I believe I will receive a 1099 from Ad Sense at the end of the year). I'm trying to get my/our ducks in a row before the end of the year. The whole idea of the business in my head was to make this endeavor more official as we start to generate more revenue. Clearly I am just learning about all this stuff so I am open to all suggestions.
5. I was thinking a lawyer or accountant for the guidance aspect and not filing out forms unless needed.
Thanks for the input--I do really appreciate your help.
Are you on the Missouri side of St. Louis? If so, check out the FAQs from the SOS site:
http://www.sos.mo.gov/business/faqs.asp It would be worth your time to spend at minimum a few hours reading that site and learning all you can before deciding to hire an accountant and/or lawyer.
Again, if in MO and if you are wanting to file the LLC with you and your brother both as members, the only option for taxation purposes is a partnership or S-Corp. I would recommend off the brief discussion here a partnership. That means you will have to file a Form 1065 and then report that profit/loss on your personal returns via the form K-1 I previously mentioned.
You can file a partnership return yourself using a paid tax software, but I've fixed quite a few mistakes after the client receives an IRS letter about problems, issues, etc.
IMHO, until the business is profitable, I would probably sit down and have a talk with your brother about not creating an LLC and just reporting everything as a sole-proprietorship on your (or his) tax return and settling up the tax benefits/payments after filing the return.
If you hire a CPA to file a partnership tax return on your behalf, you're probably looking at $600 as a minimum if the guy/gal has any reputation and plenty of work.
As for the expenses, try to keep all receipts you have, but still claim all true expenses whether you have a receipt or not.
For some really really basic advice, make sure you keep a separate bank account for personal and business. Also, I'd get something in writing between you and your brother in case things go south.
As for the organizing docs and liability issues with an LLC if you decide to create one, a lawyer would probably be a better bet IMHO than a CPA.
Hope you guys do well with your venture!