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bibousa
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Why in 1065 (LLC), the K-1 is showing LLC member AND Domestic partner when the two members are only member??

 
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DS30
New Member

Why in 1065 (LLC), the K-1 is showing LLC member AND Domestic partner when the two members are only member??

Because you are reporting your LLC on Form 1065 as a partnership, the K-1 will use the term "partner" when referring to members of the LLC. This does not change an LLC member to a partner. It is only a term used for reporting requirements on a Form 1065. So just because the K-1 lists the LLC member as both a member and domestic/foreign "partner"  does not change how the members of the LLC are treated within the construct of the LLC itself.

Please note that LLC's are state entity constructs but reported for federal income tax purposes as either corporations or partnerships (or disregards entities for single member LLCs and certain husband/wife LLCs).

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DS30
New Member

Why in 1065 (LLC), the K-1 is showing LLC member AND Domestic partner when the two members are only member??

Because you are reporting your LLC on Form 1065 as a partnership, the K-1 will use the term "partner" when referring to members of the LLC. This does not change an LLC member to a partner. It is only a term used for reporting requirements on a Form 1065. So just because the K-1 lists the LLC member as both a member and domestic/foreign "partner"  does not change how the members of the LLC are treated within the construct of the LLC itself.

Please note that LLC's are state entity constructs but reported for federal income tax purposes as either corporations or partnerships (or disregards entities for single member LLCs and certain husband/wife LLCs).

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