Schedule C distributions from the Business to owner as a Single Member LLC

[42Hammer]

Need help determining where to enter the 'expense' of the owner draw as a distribution? Also, how to create the distribution as personal income on 1040...

Currently, the IRS laws says that the distribution should be received on a schedule K which is not in TT Home and Business. Turbo Tax Business can produce the schedule K, but is not for a single member LLC, and that I need to use TT Home and Business. 

Help...!!!

[VolvoGirl]

Duplicate.  See other post.

[SharonD007 · Accepted solution]

When you operate a single member LLC (considered a Disregarded Entity by the IRS), there isn’t a difference between you and the LLC for tax purposes. The profits or losses generated by the LLC are reported on the Schedule C of your personal tax return and your net income (when you have a profit) is considered your owner draw. There is no Schedule K-1 needed.

If your LLC files as a corporation, you should have filed Form 8832 to classify as a corporation and you will file Form 1120 or 1120S.  You can create this tax return in TurboTax Business, and you will be able to create a Schedule K-1 for yourself.

Please see the IRS link Single Member Limited Liability Companies for further details. 

Also, you can review the TurboTax links Limited Liability Company Taxes and What Is a Schedule C IRS form?.

[42Hammer]

Very helpful, thanks!