Question

We have a LLC that files 1120's.

Forum|Forum|4 years ago
March 14, 2022
2 replies
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will Turbo Tax business file a LLC that has stocks?

A

Anonymous_

Employee

You have an LLC that files (has elected) an 1120 or an 1120-S?

Either way, TurboTax Business supports the preparation and filing of either form.

Carl11_2

Employee

When it comes to taxes, if you file 1120 then you have a C-Corp. If you file an 1120-S you have an S-Corp. When you elect to have your LLC treated like a corporation for tax purposes, (be it C or S-Corp) then when dealing with taxes (and only when dealing with taxes) you don't have an LLC. You have a corporation.

TurboTax Business (different from Home & Business) is used for completing and filing returns for an S-Corp (1120-S), C-Corp (1120), Estates & Trusts (1041) and Partnership/multi-member LLCs (1065). TurboTax Business can not be used for completing a personal 1040 tax return of any type, since that particular tax form is not included in the TurboTax Business program.

TurboTax Business is only available as a download or CD purchase for the Windows operating system. It is not available as an on-line product, or for MACs.

A

Anonymous_

Employee

@Carl11_2 wrote:

....if you file 1120 then you have a C-Corp. If you file an 1120-S you have an S-Corp.

I am not sure anyone would take these statements the wrong way (hopefully not), but the form that is filed does not dictate the type of entity; it is the other way around.

Carl11_2

Employee

Good point. If IRS Form 2553 was filed and accepted by the IRS to treat the LLC "like an S-Corp" then then 1120-S is completed. If IRS Form 8832 to filed and accepted by the IRS to treat the LLC "like a C-Corp", then the 1120 is completed.

Note that when you elect to be treated by a corporation, the business must "act" like a corporation and follow all rules and laws at the federal and state level. Not doing so will be expensive when it catches up to you.