mvp2885
Level 5

Practicing 1065s at the moment (these are scenarios). Question is; I have a partnership (2 individuals 50% each) who registered as an LLC with their state. I am filing out the K-1 worksheet for each partner on proseries and it asks if they are General or limited.  If I click limited, page 4 schedule K does not calculate SE tax on line 14a, but if I click General, then it does. My question is, if they formed an LLC as a partnership, are considered members or partners? Because if they are members, they are avoiding SE tax which doesn't make sense. I mean, I can manually enter the amounts on 14a on their own k-1, not the 1065 schedule K, and im wondering if that is the work around? Or how should I go about doing this? Please help. 

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