Llc

[lsmith]

It was my impression that a sole owner of an LLC. Is it possible to file a s corporation and furnish a K1 to the owner? I don't understand it that way, but think that I have a K1 with no business return. Can some one clue me? Thanks

[jainen]

use form 1120-S

>>a K1 with no business return<<

An LLC that elects to file as an S-Corp must comply with all the rules pertaining to such an entity. Instead of Schedule C, you would use form 1120-S.

[OldJack]

It was my impression that a sole owner of an LLC. Is it possible to file a s corporation and furnish a K1 to the owner? I don't understand it that way, but think that I have a K1 with no business return. Can some one clue me? Thanks

If the single-member LLC has elected to be an LLC/S-corp it must file a tax return 1120S with a 1120S-K1 attached for each member/shareholder of the LLC/S-corp. The member/shareholder also gets a copy of the 1120S-K1 (for all tax info other than a W2) in order to report the S-corp tax information on his/her 1040 properly. The member/shareholder should also receive a W2 for payroll wages paid from the LLC/S-corp.

If the single-member LLC has not elected to be a LLC/S-corp the LLC reports its income and expenses on form 1040 Sch-C (and there is no K1).

[lsmith]

Llc

Choice must have been to file as a sub s. I have a copy of the k1 but not the business return (Sub s); however, k1 was posted to page two of schedule, but did not identify sub s parternership or anything else. Just confused a tired fellow.. gotta follow up and obtain a copy of business return..

[sandysea]

Are you filing the 1040 for the individual? You don't need the corporate return...you only need the k-1 to pick up the taxable items for the s/h and this should indicate if it is a partnership or a corporate k-1...

[ChEAr$]

How does preparer know

Are you filing the 1040 for the individual? You don't need the corporate return...you only need the k-1 to pick up the taxable items for the s/h and this should indicate if it is a partnership or a corporate k-1...

that the K1 is proper without asking to see the 1120S? Client should know, and unless
he is a minority member (hard to imagine such in a smal LLC of course) he should have
a copy of the 1120S for the asking. IF it is already prepared that is.

[JoshinNC]

But why would you need the 1120S?

Your responsibility is to report the income as reported on the K-1. You are not involved in an audit of the 1120.

[thomtax]

Same question

I have been wondering the same thing, but just did not want to offend anyone by asking.

[ChEAr$]

we just don't know

OP (L Smith) referred to the fellow as a sole owner with an LLC but didn't know about
the S corporation status; only that he had one single K-1.

So what to make of that? Who prepared any 1120S anyway? And if it's a one owner
business, he should know details.

And yes, it is our responsibility to ascertain the reasonablness of the K-1 being associated
with some type of entity filing.