Hello, Schedule K instructions for the Analysis of Net Income (Loss) per Return says "Report all amounts for LLC members on the line for Limited Partners". The software enters the net income in the (iv) Partnership column even though we are individuals and we each report ourselves as individuals on line I1 on Schedule K-1, “What type of entity is this partner?”. And Schedule K also reports the income on row 2b, Limited Partners instead of 2a, General Partners. I am not sure why the Schedule K instructions direct LLC members to report as Limited Partners. This is confusing to me and I am wondering if there is an explanation. Afterall, we are hardly limited as we both perform all the activities and services of the business.
On Schedule K-1, Item G, I selected “General Partner or LLC member-manager”. But this is in conflict with the Analysis of Net Income (Los) per Return section, as described above. I view our structure (and business, for that matter) as very simple. The Form 1065 and Schedule K/K-1 instructions seem to make reporting more complicated than it needs to be!
Any assistance would be greatly appreciated.
