An LLC reports income on your personal taxes. If you have 5 members you obviously will be splitting the profits 5 ways and each member will be reporting their share of the proceeds on their taxes. I would highly suggest you find an accountant locally that can explain all the pluses and minuses of being an LLC vs. a Corporation. Pluses and minuses to both.
You've received some great advice here from dream2clean. With 5 members (partners) you must be diligent to ensure that all members are in agreement with which option will work best for ALL of you. It would definitely be worth the time and money to find a local accountant who can assess your group and your financial situation and advise accordingly.
Good luck to you! Please be sure to come back and let us know what you decide.
This is definitely a complicated subject and if you are not sure hiring an accountant is a good idea. However, you can learn a lot yourself by doing some basic web search. The short answer to your question is that there are options other than partnership, but which one is best will depend a lot on your and your partners' individual circumstances and also the financial picture of the business.
Keep in mind that an LLC is a legal structure and not a tax structure and is essentially ignored by the federal govt (IRS) for tax purposes. Therefore, for taxes you need to select between being a partnership or a corporation (if you were single member then you would be treated like a sole owner unless you chose to be a corp).
See the link below for more help, plus search around the web for more details if you wish. However, unless you are fully comfortable do get some professional assistance -- choosing the wrong tax structure can end up being very expensive!
I actually disagree with bansod above, an LLC is also a tax structure, in that you have what's "pass-through" taxation, rather than double taxation as with and Inc. None of the respondents addressed the S-Corp however, which may provide even greater tax savings, but which may be a bit complicated (though still possible) with 5 members.
To answer more directly, the 5-member LLC is just that, a limited liability company with 5 members (the equivalent of partners), there's no need to further structure the LLC any further. If anyone needs further advice they can feel free to contact me, this is actually part of what I do professionally, advise on entity formation issues.
When opening my checking account today they asked me which I was. I have an LLC with 5 members. When I got the EIN I defaulted to partnership but can change it. Which is better to have tax wise? The online EIN application did not explain this very well at all.