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posted Apr 3, 2023 3:37:58 PM

I formed an LLC last year that will show a loss. Do I need to file an 1120 return and issue a K-1 or can I file on a sched. C? If sched. C then which TT product is best?

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Expert Alumni
Apr 3, 2023 3:59:21 PM

It depends, are you a Sole-Proprietorship, Partnership, or Corporation? 

 

LLC is a state designation. If you didn't "form" any type of company, you most likely are a Sole-Proprietor and file Schedule C, but only you would know that. 

 

Schedule C requires Home & Business for the Desktop product and Self-Employed for the online product. 

 

According to the IRS:

 “Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.”