Can Turbo Tax prepare the K1 forms for my LLC? I am the manager. I have to prepare and send out the K1 forms.

Domestic Partnerships (by default an LLC is a partnership if it has two or more members and does not elect to be taxed as a corporation)
Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

deductions  = expenses.  if cash basis (item H1 on page 1 of 1065) and expenses were paid, a return was due.

  you say the LLC is insolvent. that may be good because the late filing penalty under IRC code sec 6698

(c)Assessment of penalty
The penalty imposed by subsection (a) shall be assessed against the partnership.

Not sure what will happen since you say its insolvent which means it can't pay.

why not dissolve the llc/partnership? 

if a return is required and not filed then the IRS could assert willful failure to file penalties under IRC code section 7203 - Willful failure to file return, supply information, or pay tax

Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution. In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure. In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting “felony” for “misdemeanor” and “5 years” for “1 year”.

The term “person” as used in this chapter includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

this means that if the IRS were to assert willful failure to file penalty, since you say you are the managing emeber it's your responsibility to file a return if one is due, the penalties would be asserted against you. 

Kind of doubt the IRS would assert this penalty but my doubt doesn't assure this.