Single Member LLC with Stock trading

[americanaccounting]

My client has bought and sold stocks with E-Trade under his LLC, which is a single member LLC.  Should Form 1065 be filed or under Form 1040 - Sch. C?  If under 1040 Sch C, how does it reflect on California Form 568?

[dkh]

Single member LLCs cannot file Form1065.  File Sched C if business,  Sched E if rental.     

Are you putting the stock trades on the Sched C ?    If yes, why?

I can't answer the California Form 568 - sorry.

[hap]

SINGLE MEMBER LLC'S ARE REPORTED ON SCHEDULE C IF A BUSINESS.  ANY STOCK TRANSACTIUONS REPORTED ON SCHEDULE D.  SM LLDS' ARE DISREGARDED ENTITIES AND REPORTED ON YOUR PERSONAL TAX RETURN.

IEG

[Just-Lisa-Now-]

If you check the box at the top of Sch C that its a CA LLC, then when you switch over to the state return (assuming youve installed the 568 module) you should have the SMLLC as an option....it will pull the Sch C info over to it and compute the $800 annual fee.

You want to be sure he qualifies as a day trader, not many people do.

https://www.irs.gov/taxtopics/tc429