If there is no backup withholding in box 13 of the K-1, where you put it doesn't matter. But understand that if the K-1 is in "your" "name" putting it into the LLC does not change the fact that you "will" pay both sides of taxes due. Your side, and the additional 15.3% self-employment tax paid by the employer. So if "you" want to pay the tax out of your single member LLC, you can. But it would make more since to let the corporation that issued you the K-1 pay the employer side and report that withholding on it's own tax return.
As for your salary (that you keep putting in quotes as if it's not really a salary) is reported to you on a W-2, and the issuer of that W-2 is required by law to withhold social security and Medicare at an absolute minimum. If your W-2 income is over $12K, then the employer is required by law to withhold FICA taxes based on the W-4 you provided to that employer, as well as the employer side of those FICA taxes, if any.
Additionally, if your state taxes personal income then required state tax withholding comes into play too.
Bottom line is this:
If the K-1 is reported to you with your name on the K-1 as the recipient of any distributions, then that K-1 is reported on your personal tax return and is "NOT" reported on the SCH C.
The W-2 will undoubtedly be in your name, and you'll report that in the W-2 section of the program. Not on the SCH C.
Now what you physically do with the money is irrelevant. Put it into any account you desire. But how you report that income on your tax return "is" relevant.
Now on the K-1, it is perfectly possible for your single member LLC to have ownership in another corporation. If that's the case, then the K-1 will be issued to the LLC that you own, and not to you personally. In that case, you would indicate in the program that your LLC received a K-1 and that would be reported in the Business Income/Expenses section for the SCH C. But if you report it there and the business is not the named recipient on the K-1, you can expect to get a paper audit 24-36 months down the road after you file. If that happens, then the IRS is not going to allow you to claim the K-1 on the SCH C if the business is not the named recipient of the distribution on that K-1.
I have seen over the past 10 years plus where folks have attempted what it appears you are trying to do, and when it comes back to bite them 24-36 months down the road, what they end up paying in back taxes fines and penalties far exceeds what they "saved" on their tax liability with the original filing.
