Question

Retained Earnings Entry in Balance Sheet for LLC

Forum|Forum|3 years ago
January 20, 2023
3 replies
0 views

My business started in 2022. I can't figure out how to enter retained earnings from my balance sheet in my accounting software to Turbotax. My understanding is a multi member LLC can't have retained earnings but this is listed as equity somehow? How and where would I enter it? Thanks in advance for your help!

TurboTax Business Windows

A

Anonymous_

Employee

I will page @Rick19744, but members in a multi-member LLC have capital accounts.

These entities differ from S corporations (although both multi-member LLCs and S corporations are pass-through entities).

Rick19744

Employee

I am not in a Windows environment, so I can't see the options.

Having said that, I assume that TT somehow / somewhere in the software will just reflect this on line 21 of Schedule L of the form 1065; partners' capital accounts. This line serves the same purpose.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

A

Anonymous_

Employee

There is a balance sheet section under the Federal Taxes tab, but it might be better to enter Schedule L figures in Forms Mode.

T

ThomasM125

I assume you are preparing a partnership from 1065. If so, your retained earnings are analogous to partner's capital accounts. It appears on line 21 of Schedule L. You will see below the Schedule L in TurboTax the Schedule M-2, where the beginning capital account balance can be entered and you will see how the ending balance is calculated based on your entries of income, deduction and distributions.

You find Schedule L (Balance Sheet) by choosing Form 1065 p4-5 in the Forms mode in TurboTax.

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