Not for profit LLC

Forum|Forum|8 months ago
January 14, 2026
6 replies
123 views

I have been filing results from our car club organized as an LLC but we are not for profit -- our annual results are plus or minus $100 -- can I file as an non profit or some othe method ?

TurboTax Business Windows

Best answer by LaShaunA3

Box 14 Code “C” (other self-employment income) on the K-1 isn't used to report ordinary partnership income. It should only appear in limited situations. Based off your initial disclosure of the type of business and activities, I doubt this would be the case.

If the partnership experienced an overall loss for the year, and partners show losses in Box 1 and Box 14A, a positive amount in Box 14C could be a reporting or software error.

If you believe the partnership has made an error on your Schedule K-1, notify the partnership. Ask for a corrected Schedule K-1. Don’t change any items on your copy of Schedule K-1. Be sure that the partnership sends a copy of the corrected Schedule K-1 to the IRS.

https://www.irs.gov/instructions/i1065sk1

Mike9241

Level 15

Filing as a nonprofit requires approval of nonprofit status by filing Form 1023 with the IRS. TurboTax does not support any non-profit forms. Here is the link for a do-it-yourself preparation and filing of Form 1023-EZ

https://www.pay.gov/public/form/start/62759871

There are also numerous websites that can do this. Use at your own risk. Until then you may have a for profit partnership which would require filing form 1065. There is also the possibility it's operating as a hobby. As a hobby, income is taxable, but expenses are not deductible.

see this webpage from the IRS as to hobby.

https://www.irs.gov/pub/irs-news/fs-08-23.pdf

Mike9241

OldCarGuyAuthor

Level 5

last questions (i hope) -- why does the K1 Box 14 show "self-employment income" as box "C"

--we lost money: $57 per partner which is correct in box 14 "A" and our capital acct is now negitive but in box "C" it shows $3210 profit, an ammount we have never made even if you add up all 10 years???

questions: 1) where does entry come from? 2) how will effect my personal tax return?

i just dont want a surprize when i start working on my return

--sorry to belabor this

big thanks

jim

LaShaunA3Answer

Alumni - Intuit

If the partnership experienced an overall loss for the year, and partners show losses in Box 1 and Box 14A, a positive amount in Box 14C could be a reporting or software error.

https://www.irs.gov/instructions/i1065sk1

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dmertz

Level 15

Seems more like a desire to be a 503(c)(7) social club which requires an approved application on Form 1024 to be treated as tax exempt. Until approved, the club can't be treated as tax exempt.