Turbo Tax business 1065 for my LLC says Ohio Business Entity Form required however have never done that before

[dommett01]

As an LLC, I thought our taxes are just pass-through on our individual 1040 forms. My husband and I are the only members and we reside in Ohio. I have to pay $50 to walk through the tax form but I'm afraid I don't need it (since I have never needed it before - taxes having been done by accountants who should know). I don't want to pay $50 to find out I have something marked incorrectly triggering this "required" form for Ohio. Anyone else?

[ColeenD3]

You have a partnership. An LLC can't be a Qualified Joint Venture. Ohio is not a community property state.

A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership.

A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company).

Spouses as Joint Venture LLC Owners: However, if the joint venture is incorporated as a legal entity -- such as an LLC -- under state law, the IRS qualification is not allowed and the venture is treated as a partnership unless the married joint venture owners live in a community property state.
 

[dommett01]

So are you saying I need to change my business type in TurboTax to be "Partnership" instead of Limited Liability Partnership or Company (I've tried setting TT business type to both of these and it still says I need to file the Ohio Business Entity Tax Return)? I'm afraid I don't understand all the terms you have provided (without having to do some googling) and could use a little more layman explanation.

[MaryK4 · Accepted solution]

Ohio has a Commercial Activity Tax that applies to most Ohio business entities including LLCs.  It would only apply if you had taxable gross receipts of more than $150,000 in the calendar.  Otherwise there should be no other Ohio state returns.  You may want to see if you need to file any local tax returns.

@dommett01