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Level 2
posted Mar 12, 2023 12:37:55 PM

.disregarded entity

I cannot file electronically, because TurboTax says my LLC is not a disregarded entity. But I am the sole proprietor. Where can I change the info, to have TurboTax recognize my llc as a disregarded entity

0 10 1363
10 Replies
Employee Tax Expert
Mar 12, 2023 1:07:13 PM

Please clarify the exact message you receive when you attempt to e-file your return. Also, what version of TurboTax are you using?

Level 2
Mar 12, 2023 1:15:52 PM

It is Home and Business.  The message reads:

The return is ineligible for electronic filing. This return includes an LLC which is not a disregarded entity.  The return must be printed and mailed

How do I change it to a disregarded entity

Employee Tax Expert
Mar 12, 2023 1:57:01 PM

Are you filing a joint return?   What state are you filing in?    Did you complete a Schedule C in the business section of Home & Business?   Or what section did you enter your business information in?    

 

Level 2
Mar 12, 2023 4:02:39 PM

I am filing in CA.  Joint return.  I filled out a schedule C. No employees, just the sole proprietor. I never saw the question in your sample. I have been using this version of TurboTax for the last 20 years. and this error is new.

I always import from the year before.

Level 15
Mar 12, 2023 4:06:54 PM

So you are not a Single Member LLC?   See if my notes help.  

Is it trying to fill out a 568 return?  You have inadvertently activated the Calif LLC return. To turn it off, go to the Calif Topic List "Business / Sch C Wks" screen that asks "Is *business name* a Single Member LLC for California filing purposes?", and answer No.

 

In the California interview, on the page "Business Summary", (and you get there by clicking on the "Start" button next to "Business Summary" on the "Uncommon Income and Other California Adjustments" page), there's a "Note" that reads "if any of these businesses are a Single Member LLC for California, select edit next to that business."  I assume that's what you did.

 

If you're using the desktop program you should be able to simply go into "Forms" mode and delete that form from your income tax return.

Level 2
Mar 13, 2023 10:00:26 AM

It is a single member LLC.  Just one person.  It fills out 568 for the LLC and it should do that.  I do this every year.  why does TurboTax think I am NOT a single member LLC?

On my sch c worksheet it says:  single member LLC?  and the yes field is crossed.

 

Level 2
Mar 13, 2023 11:50:27 AM

I went to the state CA business summery page and edited my LLC saying again that it is a disregarded entity, but TurboTax still tells me it cannot e-file, because my LLC is NOT a disregarded entity.

I really want to e-file.  Please help

Level 2
Mar 17, 2023 10:28:16 AM

could somebody please answer me?  I believe it is a TurboTax mistake in the software.  Please advice. Ellen

Expert Alumni
Mar 22, 2023 8:52:40 AM

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

 

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

 

Go to the black panel on the top of your screen and select Online. 

  1. Scroll down to and select Send tax file to Agent. 
  2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 
  3. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

 

@ellenklima 

New Member
Apr 16, 2023 4:09:13 PM

I found the error in mine 

in form 562 

I pressed on U1 by mistake as not a disregarded entity