My wife and I started a farm business LLC. It says we should file a schedule F. The FEIN paperwork from the IRS says we file a 1065? We're confused what's needed.

[re2boys]

Just a clarification.  An LLC is a state created entity.  The federal government completely ignores the fact you have an LLC.  As far as feds are concerned, a business is a sole proprietorship, a partnership, an S-corporation, or a standard C-corporation.  The fact the they expect a 1065 means it is considered, by the feds, as a partnership.  Many states have their own reporting requirements for an LLC.  Complete the 1065, which will generate a K! for each partner.  Then each partner transfer K1 information onto their federal ans state income tax returns.

[ScruffyCurmudgeon]

@re2boys  see answer provided below on that very same point - apparently the OP @mark.a.cass has previously misconstrued the option that is only available in the 9 states, and has used that option to think his partnership was disregarded.

[mark-a-cass]

not exactly.  The TT pro said if i live in another state i have to prepare the llc 1065.  I responded that I was in OK, (so not a CP state).  Since TT pro said file 1065 and did not mention Sc. F, I asked that we would be filing 1065 in lieu of sc. F.  TT pro responded we file the 1065 (no sc. F mentioned again).  Later after others responded elsewhere to 2nd question stating we do file the sc. F, TT Pro at that time responded that we do file Sc. F and attach to 1065.  Not much misunderstanding or misconstrued from what I was told in black and white.  Just got off phone with TT CPA and stated I do file Sc. F, it gets added to the 1065.  Farm expenses/income like materials/supplies/crop seed/utilities/etc go in sc. F, and startup costs (like llc license, etc. go in 1065 business organizational costs.  After 3x TT Pro's (CPA or EA), I hope this is the last and final correction to how to file a partner llc farm business in OK.  I surely don't want the IRS breathing down my neck for incorrect filing.  I'm not a huge corp with investments and interest accounts, depreciating assets, etc., and have relatively simple expenses (no income yet)...shouldn't be that hard to file.

[re2boys]

@Scruffy_Curmudgeon   My point is:  There is no such thing as a federal LLC tax return!  Second point:  Schedule F is ALWAYS filed AS PART OF a tax return, it is not a stand-alone document.  

[ScruffyCurmudgeon]

Actually, it is unfortunate that there was ever any mention made in your discussions of the option of SMLLC for community state residents.  Right from the start, the discussions should have been:
1.  Partnership Form 1065 with Schedules K-1 for each of the spouses. using TurboTax BUSINESS
2.  TurboTax personal - any version of Desktop (preferred over online by all "superusers" - any version supports entry of Schedules C and F.

[ScruffyCurmudgeon]

@re2boys you are aiming at wrong person.  In response, Federal regulations do very much discuss LLC v. SMLLC for community property states and in the latter case give explicit direction that a single member LLC being a "disregarded entitiy" (including the odd case of married partners in community property states) have option to file as Sole Proprietors (two, both), but otherwise all other married couples and anyone else in a multi-member LLC must file Partnership 1065, and I have never said anything but that!
Furthermore, I have explicitly pointed out that the Schedule F goes with the 1065 (or were it the case of Sole Proprietor which it is not here - also goes with 1040~)  So not sure why you are citing me!

As far as the dialog goes, it was and is always the OP who introduced the issue of avoiding 1065 thinking a married couple in general could do so. as to who told him Schedule F was not available in whatever case - well you can track that down in the dialog, I really don't know and don't care because whoever said it is wrong.

[mark-a-cass]

lol...and I'm not sure where you can track down that I ever made mention of skipping out on a 1065.  I've never had an LLC before, always filed schedule F as sole proprietor for non-llc farm business.  I've always done schedule F, which is what was confusing when they said i would be filling 1065 instead.  My whole entire question and conversation thereafter was pointed at the fact with the new introduction of 1065, we did not know if we'd be filling both, or one or the other.....never anything about trying to bring up an "issue of avoiding 1065".  I already knew we were a non-community property state and have to file as a partnership, and actually brought that point up that we were, and live in a non-community property state in my very first response back.  I even mentioned that it was automatically creating both schedule F and the 1065, but because TT Pro had ONLY mentioned 1065 and NOT Schedule F, we were confused again.  jeez....

[ScruffyCurmudgeon]

From your original question:  "I'm in Oklahoma, and although I've always done schedule F, because of property laws or something being a multi-member (husband/wife) LLC, we can not file schedule F.  TurboTax representative specifically stated we can not, and need to file the 1065 instead.  Something about a disregarded entity"

[ScruffyCurmudgeon]

That quote and the reference to "disregarded entity" should never have been part of the discussion and it is unclear who introduced it - you or the "TurboTax representative"

[MinhT · Accepted solution]

It depends.

If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), your husband-wife LLC is a disregarded entity for tax purposes and you can file a Schedule F for your LLC on your personal joint tax return.

If you live in another state, then you have to prepare a LLC return (form 1065). You cannot use TurboTax online to prepare form 1065, but have to use TurboTax Business which is only available as a CD/Download on a Windows computer (not compatible with Mac).

You can purchase TurboTax Business from this link:

https://turbotax.intuit.com/small-business-taxes/ 

[mark-a-cass]

We live in Oklahoma.  So I should not start a Self-Employed online like I've done previous to the new LLC farm?  And we would not be filing the Schedule F?  How do we file our personal taxes (1040) from the income/expenses from the business as owners?  And would we still be able to talk online with turbo tax cpa for help?

[MinhT]

As Oklahoma is not a community property state, you should file from 1065 for your LLC.
Form 1065 includes a form K-1 for each member of the LLC. The form K-1 lists the share of income/loss for each member of the LLC.  As you are filing jointly, you enter these forms K-1 in your joint personal tax return.
The TurboTax Live (help from a tax expert) is available to users of TurboTax Onlive, but not TurboTax Business.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/6419943">https://ttlc.intuit.com/replies/6419943</a>

[mark-a-cass]

I see we can talk to turbotax for tax advice over the phone buying the business version.  I also see it says it does not do 1040 forms for personal taxes.  So we will have to buy 2 versions to complete LLC and personal taxes?  I will need Business for LLC and self-employed for personal 1040 and contractor expense deductions?

[MinhT]

Yes, you need 2 different versions of TurboTax.
You need TurboTax Business to file form 1065 for your LLC. If the contractor expenses are for your LLC. they are already dealt with in form 1065.
If you do not have other self-employment income, you do not need to use TurboTax Self-Employed and can use a lower-priced version such as Deluxe or Premier.