The IRS considers you and the SMLLC to be the same entity. When you enter Schedule K-1 from the other LLC, you have reported that income on your tax return. If you were questioned about the lack of income, you have the K-1 as backup because here is no way to report the outside LLC activity on Schedule C for your SMLLC. Any expenses you have for your SMLLC would be reported on Schedule C.
@darwin2902
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