Thank you! My Canadian partner lives in Canada. When we file taxes in the US, we file as a partnership. The business does not currently generate any income in Canada, and did not for 2014. Possibly for the future.

T2125 only applies to proprietorships or partnerships, not corporations.
This is a very technical question in Canada as we do not have LLC's. We might have Limited Liability Partnerships, which may be different from province to province, and are usually limited to doctors and lawyers, etc.  Generally LLC's are considered to be corporations, which might mean that the revenue and expense of the LLC could not be filed as a partnership in Canada. The only way to get a definitive answer for your partner is for him or her to talk to an
accountant in Canada as to how to file, or if there is any benefit to filing.

Thank you - this is helpful. I appreciate it.

PS - Delphision, your answer implies that my business partner might not be obligated to file, especially since there was no income from the LLC (which Canada considers a corporation). Am I reading that correctly? If so, that would simplify things.

It is a distinct possibility since there is no income,  I wouldn't like to see her lose any potential benefit of a loss carry forward though.  This answer to this question is going to be determined by the tax treaty between our countries and someone who is qualified to read and understand it.