While this is unusual, and requires a bit of extra paperwork at the end of the year, it does not mean that the club needs to disband, or change its tax status.
When running the ICLUBcentral Tax Printer, the club needs to click the check box to the question of whether any individual or estate owned, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership. Before selecting this check-box, be aware of partnership constructive ownership rules. An individual is considered to own an interest owned directly or indirectly by or for his or her family. The family of an individual includes only that individual's spouse, brothers, sisters, ancestors, and lineal descendants.
Note that for tax purposes a Trust is normally considered to be a separate individual, and not part of a family, even if it was established by a family member.
Making this selection will have the tax printer produce Schedule B-1, which is an extra page for IRS Form 1065. This form needs to be filled out manually and filed along with the regular 1065 form generated by the tax printer.