Andrew_W
Employee Tax Expert

Get your taxes done using TurboTax

From a tax perspective, a sole-proprietorship and a Single-Member LLC (SMLLC) are treated the same. Both are reported on Schedule C on your personal return, and TurboTax handles the business entries for this the same way, as self-employment income. When entering the business information, there is options to indicate that the business is a LLC and to enter the EIN. If you carryover your business information from your 2023 return, this section would just need to be updated to indicate that it is a LLC and to enter the EIN.

Your grant should be reported as business income, reported on Schedule C. Since a SMLLC is treated the same as a sole-proprietorship, it is not taxed twice.  

One thing to watch for in California with a LLC - California Form 568, Limited Liability Company Return of Income, must be filed along with your personal return. TurboTax can handle this form, it may generate automatically when you indicate that the business is a LLC, or can be prompted manually. Expert @PatriciaV wrote a handy guide for this here: https://ttlc.intuit.com/community/taxes/discussion/re-where-is-california-tax-form-568-in-turbo-tax-...

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