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Turbotax is saying my business is an LLC when it is not. How can I change this iincorrect designation?"

Forum|Forum|7 years ago
June 5, 2019
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TurboTax Home & Biz Mac

Best answer by VolvoGirl

You have inadvertently activated the Calif LLC return. To turn it off, go to the Calif Topic List "Business / Sch C Wks" screen that asks "Is *business name* a Single Member LLC for California filing purposes?", and answer No.

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WillK

Employee

What kind of business is it? Sole proprietor? Corporation?

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Carl11_2

Employee

TurboTax personal versions (such as Home and Business) can only be used to file a SCH C for a single owner business - be it a sole proprietorship or single member LLC.
If you have any other type of business, then that business is required to file a physically separate return of it's own. For that, you have to use TurboTax Business. Unfortunately, TurboTax Business is not available as an online product or for MACS. It's for the WIndows platform only. So if you have access to a windows computer you can purchase TurboTax Business at <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/small-business-taxes/">https://turbotax.intuit.com/small-business-taxes/</a>

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DaktariJFAuthor

Sole proprietor. Where can I enter this business entity type so it doesn't default to the incorrect LLC designation? Thx Carl

Carl11_2

Employee

You have nothing to change. For tax purposes and for your tax return, the only difference between a sole proprietorship and a single member LLC, is the spelling. Literally! So since there's nothing wrong, you have nothing to correct.

VolvoGirl

Employee

Is it on a California state return? Where is it showing LLC? Did you type that in as part of tne name?

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DaktariJFAuthor

Yes, the problem is on the CA state return and the incorrect LLC designation generates an LLC reporting form and an $800 LLC tax! And No, I did not type it in as part of the name and I did not type it in anywhere. I am looking for the place where this would have been entered (by default?) so I can change it and remove the error and the forms and $800 LLC tax that it generates. That is what I need to find - the spot where this info that my business is an LLC gets entered or can be modified. So far no luck finding that. Thx.

VolvoGirlAnswer

Employee

You have inadvertently activated the Calif LLC return. To turn it off, go to the Calif Topic List "Business / Sch C Wks" screen that asks "Is *business name* a Single Member LLC for California filing purposes?", and answer No.

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DaktariJFAuthor

Thank you!

VolvoGirl

Employee

Here I just went though the steps and made some screen shots, Let me know if this works and helps

Go to the State tab
Let's get your State Taxes Done Right - Click on Continue
Status of your State Returns - Click Continue up by California
Then click Edit by Income & Adjustments
Then on the page Income California handles Differently click Revisit by Business Profit or Loss Adjustment
Click Edit by the Business Name
Next screen, Is your Business owned by a Single Member LLC? Click on NO at bottom