Part of the year I was a sole proprietor and the remainder of the year I was a llc partnership. How do I file my business income?

Forum|Forum|3 years ago
March 3, 2023
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TurboTax Live Self Employed

Best answer by AliciaP1

You will report the business income and expenses you incurred while you were a sole proprietor on Schedule C of your Form 1040. The business activities from the part of the year you were a member of an LLC partnership get reported on Form 1065, US Return of Partnership Income.

See Tax Information For Partnerships for more information.

AliciaP1Answer

See Tax Information For Partnerships for more information.

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Carl11_2

Employee

You report the sole proprietorship (SCH C) as closed at least one day before the multi-member LLC opened for business. All assets from the sole proprietorship need to be converted to personal use.

If the business carries inventory, then all inventory needs to be shown as removed for personal use.

If the business claimed any vehicle use in any tax year, even if less than 100% business use, you need to indicate the vehicle was converted to personal use and removed from the business.

Once all the above is done, you can now contribute any assets as desired, to the partnership as you work through the 1065 stuff. I would expect the other partner(s) will be making their own contributions also.