The conversation did not answer all my questions.
Correct me if I'm wrong:
The LLC prepares a Federal 1065 return and does not pay Federal taxes itself, but instead sends Schedule K-1's showing the LLC's profit/loss to the partners for inclusion in preparing their personal 1040 Federal tax return.
My remaining confusion concerns the state taxes for the LLC.
Turbotax Business generates a companion state 1065 when the Federal form 1065 is created. Even though my LLC is registered in DC, based on prior advice - the income I earn on real estate owned in SC is taxable in SC, not DC. I THINK I will need to prepare and submit an SC1065, not a DC1065. The profit for the LLC will be reported as the sole income on a composite SC1040. If there is a loss, no SC1040 needs to be completed unless estimated taxes were prepaid.
Is this correct?
