@0rph3u5 wrote:
Thanks so much for the detailed answer. As you can see I am rather ignorant when it comes to these things since I’ve relied on someone else doing them.
I have a few more questions, if you don’t mind.
So the partnership LLC and nonprofit taxes are submitted separate from my personal taxes, correct?
And are there any advantages to doing TurboTax online aside from the live help (if I get the add on)?
The non-profit files a separate tax return called a form 990. There is a simple postcard form for certain non-profits, or it may be more complicated, depending on the nature of the non-profit, amount of revenue, and so on. I don't know anything about form 990.
Any partnership, whether an LLC or unincorporated, must file a partnership return form 1065. As part of filing the 1065, a K-1 statement is issued to each partner that contains financial information that the partners use to file their personal tax return.
A single member LLC is considered by the IRS as a "disregarded entity". This means it reports its income and expenses on a schedule C, the same way that an unincorporated sole proprietorship reports it's income and taxes. Schedule C is an attachment and part of your personal tax return. Your business profit from schedule C flows to the main form 1040 where it is combined with your other income, personal deductions, dependents and credits.
There are several differences between Turbotax Desktop (installed on your own computer) and Turbotax Online. If you don't plan to use the Live Online option, then the main differences are the online version is more expensive and less powerful, but you can access it from any computer with almost any web browser. Returns filed using the online version are stored in your account in the cloud; returns filed using the desktop program are not kept online, you are responsible for your own data security and backups.
