Depends on the type of LLC.
- Single member LLC.
This type of entity is not recognized by the IRS as a separately taxable
entity, and is therefore disregarded by the IRS. All income and expenses is
reported on a SCH C as a part of the owner's personal tax return.
- Multi-member LLC.
For this type of entity, if the number of owners is only two, and both owners
are married to each other, and they will be filing a joint tax return, this is
also considered as a disregarded entity. For this, all business income/expenses
is split between the two owners and a separate SCH C for each of the
owners is included with the jointly filed personal tax return in a community property state (see comment below).
If you are not in a community property state or the members are not married then you will file a Partnership return.
- Multi-member LLC
two or more owners NOT married to each other. This type of LLC has two or more
owners that are NOT married to each other, or if married are NOT filing a joint
tax return. The IRS considers this to be a partnership. For this type of LLC
setup a completely separate partnership tax return is completed outside of and
completely separate from the owners personal tax return. TO file a partnership
return with TurboTax, you must use TurboTax Business, which is a completely
separate program from Home and Business.
Or is the LLC being taxed as an S-Corporation ?
