Best way to produce Form 1065 + K-1 (first time doing taxes as multi-member LLC)

[jenmotogal]

Hello! 

I started a small business last year with my business partner. We formed an LLC. 

As I understand, an LLC produces two forms:  1065 + K-1.    [EDITED to reflect that LLCs *do* need to file but they don't pay tax, rather the members do]

This is my first time doing anything like this, and I'm looking for help online to populate these two forms.  We didn't make any profit last year and both paid out several thousand in expenses (tradeshows, ads, etc.) 

Question:  I need help producing these 2 forms but hoping to avoid the cost of professional tax help. I see "TurboTax Business" for $170 but I'm wondering if this is overkill - it says "free federal e-file included", but LLCs do *not* file.  So I'm wondering if I can get away with something less comprehensive?  Any advice is greatly appreciated!  

[Once I produce these forms, I'm going to take them to my personal accountant and include them in my personal taxes.  But I am hoping to avoid going to him for my business taxes since they charge quite a bit for business tax prep.]

Thank you!! 

Jennifer

[brasstax10]

Not having your personal accountant do your 1065 is going to cost you even more after you make some rookie mistake causing all kinds of problems for yourself and the other members. Don't do this yourself.

[AmyC]

The business program walks you through things similar to the individual tax program. Since your LLC made the election to be an S-corp, you need to use Turbo tax business, which can be found by following this business link.  Once inside the  program, it will guide you through the income and deductions. It will ask about the partners and it will create the K-1 forms to be distributed to the members. You DO want to file your S-Corp electronically, it is safe and easier than mailing it in. Between identity theft and other issues, e-file is the way to go. If you do mail, be sure to use tracking.

[jenmotogal]

Thanks Amy! 

We did not elect for S-corp... but I assume your answer would be the same?  

[MinhT1]

LLCs DO have to file tax returns on form 1065. LLCs are pass-through entities and pass through theoir profits (and losses) to their members to be taxed and generally do not pay taxes. But they have to file tax returns.

[brasstax10 · Accepted solution]

A 1065 has to be filed and that's not the question. The question is whether jenmotogal should use a tax pro to file the return or use Turbotax Business. To recommend that someone who is so obviously lacking in accounting and tax knowledge prepare this return themselves using Turbotax Business is reckless.

[jenmotogal]

Ah!  I get it now.  Thank you, MinhT1. 

[jenmotogal]

Thank you, Brasstax10. 

I understand now that I DO have to file as a business.  

Just called my accountant to get a quote.  

I'm also researching organizations who offer tax prep for small businesses, particularly since my income was super low last year.  

[AmyC]

Yes, you need the 1065 for a partnership. Honestly, it is March 13. You may not find anybody willing to take you on since the return is due Monday. We are working all weekend to answer any questions you may have, if you get stuck doing the return.

[Rick19744]

At this point, it is time to file an extension.  No tax will be due at the partnership / LLC level, but don't add the additional pressure of thinking you MUST get the return done immediately.

Get an extension filed for the LLC and keep in mind you may need to extend your personal tax return as well.  Nothing wrong with filing an extension.

[jenmotogal]

Amy and Bryan,  you are lifesavers. I had no idea the deadline was Sunday.  Wow I suck at this. 

My personal accountant charges $600 for business filings and I'm just gotta bite the bullet and go with him. 

He's going to file an extension for us by Sunday so that we can breathe a bit.  I will still be in a bit of a hurry, because I want to file my personal taxes by 4/15 and need the K-1 for that.  

[Critter]

FYI ... if the 1065 is put on extension the the personal tax returns must also go on extension until the partnership return is completed.