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Level 1
posted Feb 18, 2024 12:49:41 PM

Can't add in a new member in LLC Business 2023

I am using Turbotax Business 2023. We added a new member to the LLC last year, and when I am trying to add them the two boxes "This is member's first year as a member" and "The member left the company this year" automatically are checked and I cannot uncheck them.

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1 Replies
Expert Alumni
Feb 19, 2024 10:50:40 AM

We have confirmed the experience you describe and are looking into a possible fix.

 

In the meantime, here is a work-around that will give you the result you need without causing any form errors.

 

  1. Delete the new partner/member you entered (if any).
  2. Go back to About Your Business and change your answer about a change in ownership to No. Confirm the removal of the Additional K-1 Info form.
  3. Go to Forms and open Sch K-1 Wks. This form has an internal scroll bar to move between partners.
  4. Scroll down below Partner Two and enter the information for your new partner. Any field in red needs to be completed. Be sure to check the box for "Initial" to indicate this is the first K-1 for this partner.
  5. For existing partners, check the box for sale or exchange under the ownership percentage to explain why it changed from the beginning percentage.
  6. If you want to use Weighted Average Percentages to allocate income and expenses, you'll need to create a new K-1 Info sheet. Click on Open Form above the list of forms and type in "Additional" then click on "Additional Special Allocation Report" under Schedule K-1 Worksheet and Open Form. Check the box for Weighted Average on the left side of the form.

 

You will need to adjust the ending ownership/profit/loss percentages for all partners so that the totals at the bottom of the Sch K-1 Wks are all 100%. If you see a form with a red exclamation mark or a field in red, click the Errors icon above the forms list to open a footer that describes all errors for that form.

 

Note that checking the box for change of ownership serves to create the Allocation Worksheet and nothing more. You do not need to report a change in ownership on the return, other than the check boxes on each K-1.

 

For any box on a form, you can right-click on the box and choose About to obtain more information on what to enter. Any box highlighted in yellow will accept direct input. Green numbers were carried over from last year; blue numbers are direct input. Black numbers are calculated and cannot be changed.

 

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