Hi
New here and looking for some advice
I am a sole proprietor, and have filed in the past with a 1040 with a Schedule C
This past year I also became a member in a 3 partner LLC
What forms do I file with the IRS for both of these, I have been told to do it all on a 1040 with Schedule C, but then I was told i need to file a 1065 with a K-1, if that is the case do I file both a 1040 and a 1065 with their respective Schedules attached?
Thanks in advance
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For the 3 partner you are required to file form 1065, unless you incorporate or elect to be treated as a S-Corp (then you would file 1120 or 1120-S). Your sole proprietor business can continue to file only on Sch C. You are still required to file form 1040. No tax is paid on the income on form 1065. The income passes through to your 1040 and you pay taxes on it there.
Thank you
To add to what bprotax said, when you file your Form 1065 for your Partnership (or Form 1120S if S-Corp election) those returns will produce a Schedule K-1 for each partner. Those Schedule K-1 forms are what you report on your respective individual income tax returns (Form 1040).
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