Question
Schedule K - I reporting
I have a single member LLC and use PayPal for my Merchant Services. Any funds accrued in PayPal goes straight into my business checking account. I do not withdraw any funds from PayPal. Any checks or cash I receive also go into the business checking account. Everything goes through my checking account. At the end of the year I track any incoming payments as income. That being said do I have to report the Schedule K-1? If I do that I’ll be reporting that income twice. I’ll be reporting the PayPal Schedule K-1 to the IRS and also that income will be counted when I report my income from the checking account.
