How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
9573734
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

One other person and I started a LLC business on 10/6/08 in

This answer was rated:

One other person and I started a LLC business on 10/6/08 in California. The other person withdraw from the LLC business on 10/6/09 per the terms of our operating agreement. That leaves just me as the sole member in the LLC. I am assuming that I prepare the K-1 for the other person only up to 10/6/08 and then for me through 12/31/08. I am now the sole member and am wondering if I indicate on the return that I am the only member since the other person was not in the LLC at the end of the tax year.

Hello onde,

 

Yes, you should report the income for the partner who left the business up to the date he left and the K-1 form for you will be for the entire year.

 

On the k-1 form that you issue to the partner who left the business, you should check the box at the top of the k-1 form to indicate it is a Final K-1 form filing for that person.

 

Next year assuming that you are till the only member of the LLC, you will simply report the income and expenses from the LLC on Schedule C of your personal tax return and will no longer need to file a partnership return or issue k-1 forms.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you onde

 

 

Customer: replied 6 years ago.

You couldn't have made it more clearer--tax stuff is difficult for me. Thanks for making it so simple.

 

Just to let you know, I do my tax returns using Turbo Tax and it made a difference on which software I purchased for 2008. I am assuming that I need to purchase the software for a LLC that has two people for 2008 and also a second home & business package for another business I have that is a sole proprietorship. Then in 2009 when I am the only remaining member, the home & business version [which Intuit says can be used for a single LLC member and your answer seems to confirm that] is the only version I have to buy.

Hello ondeman,

 

Yes, all of the points you listed are absolutely correct. You will still need a tax package for this year that will accomodate the filing of a partnership return on Form 1065, but starting next year you can use the simpler version which will accomodate your sole proprietorship filing.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you ondeman

 

 

Merlo and other Tax Specialists are ready to help you

Related Tax Questions