** TAX YEAR 2018 or earlier** I am employed by a company, this year I now co-own an LLC with someone. I earned money and have expenses related to both income sources. Do I need self-employed turbotax?

[s1ickarrow]

I am employed full time by a company, however this year I co-own an LLC with someone. I earned a small amount of money in the LLC, the majority coming from my current employment and have business expenses related to both income sources. Do I need self-employed turbotax or can I simply add "income from other sources" using Premier?

[Coleen3 · Accepted solution]

The issue here is the two member LLC. This is from https://www.irs.gov/businesses/small-businesses-self-employed/llc-filing-as-a-corporation-or-partner...

Pursuant to the entity classification rules, a domestic entity that has more than one member will default to a partnership. Thus, an LLC with multiple owners can either accept its default classification as a partnership, or file Form 8832 to elect to be classified as an association taxable as a corporation.

The Form 8832 is also filed to change the LLC’s entity classification. Thus, an LLC that has been treated as a partnership for several years may be able to prospectively change its classification to be treated as a corporation by filing Form 8832.

Only a single member LLC can be a sole proprietor and file a Schedule C.

An LLC is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner’s tax return (a disregarded entity).

[s1ickarrow]

Thank you for that information. From my understanding it is a pass-through entity whereby each partner files their own tax returns and includes the income and expenses as part of their taxes. Any thoughts on that ? - Also I'm not clear if I can simply include that information using Premier or if I really need the self-employed package. Unsure if this is the proper venue for this question.

[Coleen3]

You are thinking of either an S-Corp or a single member LLC. The IRS is passage is clear. You may use either Deluxe or Premier to record income on Schedule C without expenses or if you choose to to take expenses, you would need Self-Employed.

[s1ickarrow]

Gotcha. Thank you very much for the help. One last clarification: I presume I can separate expenses incurred from my work as an employee of a company, which is my primary income, from the LLC partnership I am part of using Self-Employed (conversely, I would be limited to listing expenses as an employee of a company, for my primary income, if I went with Premier)?

[Coleen3]

Yes, you would need SE for business but you can use Premier for Employee Business expenses only, entered on Form 2106 and carried to Schedule A.