I have a grain farm & I created a LLC w/ my sister that we were going to run the farm under. Everything is in my name, should I file under my name or under our LLC.

[willsterr52]

I need to see if it would be better to report the income and expenses under Schedule F or if it would be better to report the income under the LLC and expense everything thru the business that we setup. I think Schedule C.

[Vanessa A]

If you created an LLC with your sister, you would not file a Schedule F or Schedule C, instead you would file a form 1065 Partnership return.  

[willsterr52]

So would it be better to claim the farm income under our LLC and file the 1065? Or would it be better to have myself claim the income and expense everything out with Schedule F. The farm and the ground is all in my name already. I know how Schedule F works. I'm just not sure which process would be the best. Thanks.

[PatriciaV]

If you still own the farm as an individual, you would definitely report this activity on Schedule F of your tax return. Your sister would not report any income or loss for the farm on her personal tax return.

In order to report the farm under your LLC, you would need to transfer title to the farm into the name of the LLC. In this case, you and your sister would split the net income (or loss) according to the ownership percentages for the LLC.

If you have not made an election for your LLC to be treated as a corporation, the IRS assumes that it is a partnership. As such you are required to file Form 1065 Return of Partnership Income. You can do this using TurboTax Business. 

Additional information: IRS: Limited Liability Company (LLC)