Operate manufacturing soap business & farm under one LLC. Do we have to separate the two on our taxes? ie. soap under K1 & farm under schedule C or can we combine on K1?

[lparham4135]

Can we combine farming and manufacturing soap business on our K1, we operate under the same partnership LLC? Or do we have do separate using soap business under K1, schedule E and farming under schedule C

[PatriciaV · Accepted solution]

Yes, you may report more than one business activity for your LLC on one business tax return, as long as each business operates in the name of the LLC.

Enter the income and expenses under the appropriate section of TurboTax to report the net activity correctly on the partners' Schedules K-1.

To choose what activities you wish to report, go to your Business Info (About Your Business). Scroll down to "Type of Business" and click Edit. Continue to the screen "Select All That Apply to Your Business" and check all boxes that apply (see screenshot below - click to enlarge). This will allow you to set up more than one type of business for this company.

[lparham4135]

Thank you! I got this part, it is the next screen (Which industry best describes your business. It will not allow me to check manufacturing and farming. It only allows me to check one box so I check the box we had the most activity and money go in/out of. Hoping that is correct.

[PatriciaV]

Yes, choose the activity that either generates the most income or the one that consumes the most resources (time included). This is the activity that will be considered the main purpose of the company.