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eric_
Level 2

How do I change the state from an LLC to a partnership? in Business TurboTax

Business TT forced my partnership return to be an LLC.  How do I make it just a partnership in California?  

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Accepted Solutions
AmandaR1
New Member

How do I change the state from an LLC to a partnership? in Business TurboTax

When you begin your return, you select LLC (form 1065) or Partnership (form 1065). The software can't create a different type of business for your state return. The state must follow your federal selection because the state isn't a stand-alone software (the information has to transfer from federal). 

There are two ways to figure out what needs to happen: 

  1. Check your initial business selection for federal. What you login and resume your return, select Business Info tab and then About Your Business below. The first line, below About your business, shows BUSINESS TYPE name. Make sure this doesn't say LLC. (see screenshot below)
  2. Because LLCs default to be taxed as partnerships, I've noticed some questions are geared toward certain situations (even though I chose a different business type). If your federal selection is Partnership, let me know more information about why you think your CA return is a LLC. Is it the software asking a question geared toward a LLC? Or is it an actual partnership return number? 

Let me know more info and I can help you. 

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1 Reply
AmandaR1
New Member

How do I change the state from an LLC to a partnership? in Business TurboTax

When you begin your return, you select LLC (form 1065) or Partnership (form 1065). The software can't create a different type of business for your state return. The state must follow your federal selection because the state isn't a stand-alone software (the information has to transfer from federal). 

There are two ways to figure out what needs to happen: 

  1. Check your initial business selection for federal. What you login and resume your return, select Business Info tab and then About Your Business below. The first line, below About your business, shows BUSINESS TYPE name. Make sure this doesn't say LLC. (see screenshot below)
  2. Because LLCs default to be taxed as partnerships, I've noticed some questions are geared toward certain situations (even though I chose a different business type). If your federal selection is Partnership, let me know more information about why you think your CA return is a LLC. Is it the software asking a question geared toward a LLC? Or is it an actual partnership return number? 

Let me know more info and I can help you. 

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