I agree with answers above address the DE-VA issue.
Regarding federal income tax, since you are a two-member LLC, yes you will report taxes like a partnership but you will still need to file your individual income tax returns and pay your taxes via the latter.
Although the LLC must file a tax return, the LLC owners report income and pay the taxes owed on such income using their personal returns. The LLC itself does not pay taxes on its income. (At this time, the IRS has not developed a separate tax return form for LLC, so the same form used for partnerships is used, Form 1065.) The owners will each file a Schedule K-1 with their personal income tax return, which will show their ``share" of the LLC income.
The partnership files an information return with the IRS on Form 1065. Then a Schedule K-1 is prepared for each partner, showing the share of the profit/loss of the partnership. The K-1 is filed with the partner's individual return and the gain/loss is shown on the partner's Form 1040.
List of LLC-relevant forms (choose the ones cited in the article above):