SINGLE MEMBER LLCN GENERATES SCHEDULE K

Forum|Forum|3 years ago
February 27, 2023
3 replies
37 views

Hell to all. I completed single member LLC thru FED sch C and marked it is CA LLC.

I was wondering why I have sch K and on column b ; Amounts from federal k (1065): line 1 has an amount equal net income of sch C. This is single mem LLC and 568 booklet says when income is more than $300000 should have sch k. I am confused that why sch k is generated. Also, I entered number 1 for line k on 568 pg1-4.

The courtesy of a reply would be appreciated.

ProSeries Professional

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HOPE2Author

Level 7

I really need a help to get rid of this return of my mind. Please give me a hint.

Appreciate it.

shf1957

Level 6

It all depends on how that party registered the LLC TAX MATTERS to be handled. If their original application chose as a Corporation, then you would first complete the 1065 and it will generate a K1 for you to use when filing their personal income tax. You would then go onto a 1040 application and enter the K1.. it will generate the forms needed to complete their taxes.. such as a schedule C/SE etc.. BUT if they chose in the beginning to file as a Sole Prop on a Sch C, you would NOT do a 1065 at all. Hope this helps!