I own an LLC jointly,but also work a full-time job do I file a 1040 with my info from both the LLC and my job?Do we file a 1065 jointly or separate(We operated a loss)?

[blondangeluv]

Is it necessary for us to file a 1065 even though we were at a loss?  Do we each do a 1065 or is it done together?  How do we put information about our business on a 1040 form if that is what we use for our personal taxes?

[IreneS · Accepted solution]

UPDATED FOR TAX YEAR 2019

If the LLC is set up as a partnership, you prepare one 1065 return for the partnership.  As part of the 1065, TurboTax will prepare a form K-1 - Partner's Share of Income, Credits, Deductions, etc. for each partner.  Include the information from the K-1 in your 1040 return.

If you and your spouse own the business jointly, you won't need to file a partnership return if you split your business income and expenses between you and report them as separate businesses.

Here's how you do it:

1.  Split all of your business income and expenses according to your ownership percentages.
2.  Change the ownership of the Schedule C to you.
3.  Enter your income and expenses on this Schedule C.
4.  Create a new Schedule C for your spouse (make sure the business description is different from yours).
5.  Enter your spouse's share of the income and expenses on the new Schedule C.

[blondangeluv]

If it is a partnership with a friend and not a spouse are there many differences?

[IreneS]

No.  Just the first paragraph of my answer applies to your situation, then.

[blondangeluv]

Thank you so much for your time and helpful answers.  I just have one more question.  Is the 1065 a federal return and the 1065 k-1 a state return?

[IreneS]

No.  The K-1 is a part of the federal 1065 return.  Some states, though,have their own "state K-1," which is prepared as part of the partnership's (1065) return.