[GrowWebs]

Correct me if I am wrong, but a 1065 might be overkill for a one owner business (LLC or not). Yes you should report your LLC income separately on a 1065 & allocate profit/loss if there are multiple owners. However, if there is only one owner, it is IMO an extra unneeded step.

For a small business with one owner, a Schedule C (or C-EZ) attached to the 1040 will suffice. No need to send a 1065 to the IRS and then submit a K1; it is just a small business in the eyes of the IRS.

Keep it simple by keeping track/records of your business income and expenses and report it on the Sched C which attaches to your 1040.

Note: I am currently taking a corporate tax course & studying for the CPA exam. I prepared taxes as a VITA volunteer last year.

[JangoSteve]

Yes, good catch, sorry I didn't clarify. So essentially, the 1065 + K1 has 2 main purposes as I understand it. 1) Report the business income / expenses, and 2) report the respective percentages that each member takes of the business's profit / loss (notice there is no (3) for the LLC actually paying taxes, this was my main point).

With a single-person LLC, it's even simpler, because there is no (2). This is why single-person LLCs can file a Schedule C as a simple attachment to their own taxes, which gets reported on personal taxes as other income, just like the K1 would. And Schedule C is still reporting all of the company's income / expenses separately than the individual's other financials, so there is still no "muddying up" between business and personal finances.