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September 6, 2019
Question

Filling LLC Partnership Tax

  • September 6, 2019
  • 3 replies
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Are any of these wrong? Been learning about personal and business tax because I'm starting my business soon.

 

LLC Partnership tax have quarterly payments done on April 15, June 15, September 15, and January 15. Form 1040-ES is used to estimate these quarterly payments. 

 

File Form 1065 by the due date or the extension date, once a year. The K-1s generated from the 1065 will be entered into the 1040, so complete the 1065 first. The income (profit from business) entered in schedule K-1 is added to your gross income in Form 1040 where it is taxed. 

 

Schedule SE is filed once a year to calculate the actual business tax you owe for the year, which is added to your personal income tax minus any credits (if you have any). 

    3 replies

    Critter
    Employee
    September 6, 2019

    LLC Partnership tax have quarterly payments done on April 15, June 15, September 15, and January 15. Form 1040-ES is used to estimate these quarterly payments.   Wrong ... a partnership doesn't pay taxes at the partnership level ... the estimates are paid on the personal level and are reported on the personal tax return form 1040.

     

    File Form 1065 by the due date or the extension date, once a year. The K-1s generated from the 1065 will be entered into the 1040, so complete the 1065 first. The income (profit from business) entered in schedule K-1 is added to your gross income in Form 1040 where it is taxed.   Correct ....   The form 1065 is due 3/15  unless it is put on extension until 9/15 ... and it must be completed before the personal return due to the K1 issued to each partner to enter on the personal return.  

     

    Schedule SE is filed once a year to calculate the actual business tax you owe for the year, which is added to your personal income tax minus any credits (if you have any).   Correct sort of ... the sch SE is completed on the personal return to compute the Self Employment taxes only and is added to the federal taxes owed on the form 1040 and is balanced against the estimated payments you made thru the year personally. 

    September 6, 2019

    you have a substantial misunderstanding of LLC's/ partnerships taxation and reporting.      I strongly recommend that the first year you use a pro to see how it is done.  The pro can discuss record keeping and various filing and other requirements. Also what elections that can or should be made.  The pro can show you how to compute basis and at risk.  Both are important in determining deductibility of losses and certain expenses and whether distributions are taxable or tax free.     Mess up the first year and you can create a problem that is costly to straighten out.  

    Carl11_2
    Employee
    September 6, 2019

    LLC Partnership

    For starters, with IRS parlance your terminology is wrong. Either you have a partnership, or you have a multi-member LLC which is registered as such with your state. I would highly recommend you seek profession help for at least your first year. Even the tiniest of mistakes in the first year can grow exponentially with each passing year. Then when you (or the IRS) catches that error years down the road, the cost of fixing it can quite easily bankrupt the business before it even gets off the ground. Makes the cost of professional help seem like a pittance in comparison.

    So basically, you can seek and pay for professional help now. Or you can risk the possibility of paying the bankruptcy lawyer later. Costs for both are about the same. Your choice.