LLC- Partnership with Spouse

Forum|Forum|5 years ago
March 16, 2021
4 replies
27 views

Hi,

Facts:- I am using Home and Business 2020 edition and am located in New Jersey. My wife and I have W2 incomes and an LLC with 50% partnership each.

Question 1

What is the Tax filing deadline for LLC's with more then one members?

Question 2

I have entered my business income and expenses in the turbo tax, do I need to prepare Schedule K1 separately for my wife and me?

Question 3

I have paid franchisee fee in 2019, how do I claim depreciation for the same?

Thank you for your help!

TurboTax Home & Biz Windows

npierson777

Level 10

Please clarify if you're preparing the first tax return for your LLC or not. It could make a difference in reporting.

drsukhijaAuthor

Level 2

This is my second year filing for taxes for this LLC.

Mike9241

Level 15

a little late. a multimember LLC is supposed to file form 1065 (unless it elects to be taxed as a corporation) by 3/15/2021. it is now late if you did not file an extension. there is a potential federal penalty of $400 for each month or fraction thereof it was filed late. if you have a requirement to file a state return for it, those filing requirements could be different.

you evidently did not enter all the info that needs to be entered because if you did TurboTax would have automatically generated k-1's for each member, which then gets entered on your personal tax return

a franchise fee, as opposed to an annual franchise tax, is a section 197 intangible that gets amortized over 15 years beginning with the month acquired.

your knowledge of partnership (multimember LLC) taxation seems limited. I strongly suggest you use a tax pro the first year to make sure everything is set up right and reporting of the activity conforms to the tax laws. Mess up the first year and the problems can exist for a long time.

Mike9241

drsukhijaAuthor

Level 2

You evidently did not enter all the info that needs to be entered because if you did TurboTax would have automatically generated k-1's for each member?

Could you please point me to the right section so that I can validate my information?