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by JangoSteve
5762 days ago
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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. |
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