topic .disregarded entity in Business & farm

.disregarded entity

ellenklima — Tue, 24 Feb 2026 03:15:53 GMT

I cannot file electronically, because TurboTax says my LLC is not a disregarded entity. But I am the sole proprietor. Where can I change the info, to have TurboTax recognize my llc as a disregarded entity

Re: .disregarded entity

PatriciaV — Sun, 12 Mar 2023 20:07:13 GMT

Please clarify the exact message you receive when you attempt to e-file your return. Also, what version of TurboTax are you using?

Re: .disregarded entity

ellenklima — Sun, 12 Mar 2023 20:15:52 GMT

It is Home and Business. The message reads:

The return is ineligible for electronic filing. This return includes an LLC which is not a disregarded entity. The return must be printed and mailed

How do I change it to a disregarded entity

Re: .disregarded entity

DawnC — Sun, 12 Mar 2023 20:57:01 GMT

Are you filing a joint return? What state are you filing in? Did you complete a Schedule C in the business section of Home & Business? Or what section did you enter your business information in?

Re: .disregarded entity

ellenklima — Sun, 12 Mar 2023 23:02:39 GMT

I am filing in CA. Joint return. I filled out a schedule C. No employees, just the sole proprietor. I never saw the question in your sample. I have been using this version of TurboTax for the last 20 years. and this error is new.

I always import from the year before.

Re: .disregarded entity

VolvoGirl — Sun, 12 Mar 2023 23:06:54 GMT

So you are not a Single Member LLC? See if my notes help.

Is it trying to fill out a 568 return? You have inadvertently activated the Calif LLC return. To turn it off, go to the Calif Topic List "Business / Sch C Wks" screen that asks "Is *business name* a Single Member LLC for California filing purposes?", and answer No.

In the California interview, on the page "Business Summary", (and you get there by clicking on the "Start" button next to "Business Summary" on the "Uncommon Income and Other California Adjustments" page), there's a "Note" that reads "if any of these businesses are a Single Member LLC for California, select edit next to that business." I assume that's what you did.

If you're using the desktop program you should be able to simply go into "Forms" mode and delete that form from your income tax return.

Re: .disregarded entity

ellenklima — Mon, 13 Mar 2023 17:00:26 GMT

It is a single member LLC. Just one person. It fills out 568 for the LLC and it should do that. I do this every year. why does TurboTax think I am NOT a single member LLC?

On my sch c worksheet it says: single member LLC? and the yes field is crossed.

Re: .disregarded entity

ellenklima — Mon, 13 Mar 2023 18:50:27 GMT

I went to the state CA business summery page and edited my LLC saying again that it is a disregarded entity, but TurboTax still tells me it cannot e-file, because my LLC is NOT a disregarded entity.

I really want to e-file. Please help

Re: .disregarded entity

ellenklima — Fri, 17 Mar 2023 17:28:16 GMT

could somebody please answer me? I believe it is a TurboTax mistake in the software. Please advice. Ellen

Re: .disregarded entity

AliciaP1 — Wed, 22 Mar 2023 15:52:40 GMT

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

Go to the black panel on the top of your screen and select Online.

Scroll down to and select Send tax file to Agent.
You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number.
Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@ellenklima

Re: .disregarded entity

BrownBear20213 — Sun, 16 Apr 2023 23:09:13 GMT

I found the error in mine

in form 562

I pressed on U1 by mistake as not a disregarded entity