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robroutt74
New Member

Does anyone know if I can remove my business information from my personal return and file that separately? It is an LLC if that helps. Thanks!

 
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DanielV01
Expert Alumni

Does anyone know if I can remove my business information from my personal return and file that separately? It is an LLC if that helps. Thanks!

It depends on your business structure.  An LLC is a disregarded entity for tax purposes.  Even though you may have separate state requirements for your LLC filing, as far as the IRS is concerned, your LLC has no meaning.  If you are a sole proprietor you will still file your business using Schedule C, which is considered part of your personal return.  However, if you are in business with someone else, you may have a Partnership.  A Partnership files Form 1065 to report the Partnership income and expenses.  Once complete, the income (and expenses) is then sent to each Partner in the form of a K-1.  Only the K-1 information goes on the individual return.

Another structure is an S-Corporation.  An S-Corporation is formed by a special election.  You can have a single-member S-Corp, as compared to the Partnership which must consist of two or more individuals or entities.  If you wish for your business to be declared separately from your personal return (which it never truly is declared separately, as the income flows from the business onto the personal return), you want to have one of these structures.  (The last classification, a C-Corporation, is generally for larger companies, as C-Corps are taxed at the business level, whereas S-Corps and Partnerships are considered pass-through identities that passes on the income to the personal return, where it is taxed there).

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DanielV01
Expert Alumni

Does anyone know if I can remove my business information from my personal return and file that separately? It is an LLC if that helps. Thanks!

It depends on your business structure.  An LLC is a disregarded entity for tax purposes.  Even though you may have separate state requirements for your LLC filing, as far as the IRS is concerned, your LLC has no meaning.  If you are a sole proprietor you will still file your business using Schedule C, which is considered part of your personal return.  However, if you are in business with someone else, you may have a Partnership.  A Partnership files Form 1065 to report the Partnership income and expenses.  Once complete, the income (and expenses) is then sent to each Partner in the form of a K-1.  Only the K-1 information goes on the individual return.

Another structure is an S-Corporation.  An S-Corporation is formed by a special election.  You can have a single-member S-Corp, as compared to the Partnership which must consist of two or more individuals or entities.  If you wish for your business to be declared separately from your personal return (which it never truly is declared separately, as the income flows from the business onto the personal return), you want to have one of these structures.  (The last classification, a C-Corporation, is generally for larger companies, as C-Corps are taxed at the business level, whereas S-Corps and Partnerships are considered pass-through identities that passes on the income to the personal return, where it is taxed there).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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