SINGLE MEMBER LLCN GENERATES SCHEDULE K

[HOPE2]

Hell to all. I completed single member LLC thru FED sch C and marked it is CA LLC.

I was wondering why I have sch K and on column b ; Amounts from federal k (1065):  line 1 has an amount equal net income of sch C. This is single mem LLC and 568 booklet says when income is more than $300000 should have sch k. I am confused that why sch k is generated. Also, I entered number 1 for line k on 568 pg1-4.

The courtesy of a reply would be appreciated.

[HOPE2]

 I really need a help to get rid of this return of my mind. Please give me a hint. 

Appreciate it.

[shf1957]

It all depends on how that party registered the LLC TAX MATTERS to be handled.  If their original application chose as a Corporation, then you would first complete the 1065 and it will generate a K1 for you to use when filing their personal income tax.  You would then go onto a 1040 application and enter the K1.. it will generate the forms needed to complete their taxes.. such as a schedule C/SE etc..    BUT if they chose in the beginning to file as a Sole Prop on a Sch C,  you would NOT do a 1065 at all.   Hope this helps!

[HOPE2]

Thanks but as I mentioned on the title, it is SINGLE MEMEBER LLC and income came from SCH C on FED. It is not C corp OR1065. 

[dkh]

Hey @Just Lisa Now     is this something you're familiar with   the post mentions CA LLC

[sjrcpa]

Are you preparing this in the individual program?

Or something else?

[HOPE2]

Thanks, yes

[qbteachmt]

I want to address this mess, so that someone reading this understands it is a bit of a mess:

"If their original application chose as a Corporation, then you would first complete the 1065"

Nope.

Fed form 1065 is for partnership/multi-member LLC. The partnership/member entity LLC is a State construct, so they are allowed to elect to be treated as a Corporation (which makes them C, or they also elect to be an S Corp).

"and it will generate a K1 for you to use when filing their personal income tax. You would then go onto a 1040 application and enter the K1.. it will generate the forms needed to complete their taxes.. such as a schedule C/SE etc.."

A single-member LLC is a disregarded entity which means treated as if it does not exist for Fed tax filing and is when you use Sched C for the Fed form 1040. Since LLC is a State construct, your State may have different ways to handle this. This is Self-Employed, in that you and your business have no separate entity. You are your business.

A K-1 already is the end result of a separate business entity's tax filing preparation. It won't be used to make a Sched C for the same business.

A partnership/member entity LLC files a Fed form 1065. A C Corp files a Fed form 1120. An S Corp files a Fed form 1120-S. All of these create forms and info that is passed to the individual persons and participant entities (partners, members, shareholders) in that entity for use and consideration in how that business entity affects the personal tax reporting.

[HOPE2]

It is single member LLC FOR CALIFORNIA WHICH FIRST SHOULD FILE SCH C ON FEDERAL THEN BOX LLC FOR CA WAS MRKED SO WE HAVE TO HAVE A RETURN FOR CA AS SINGLE MEMBER LLC. IT IS STRIGHT FORWARD TO COMPLETE LLC SINGLE MEMBER.

NO C CORP, NO 1065, NO S CORP.

THE ONLY SHOULD FILE IT IS LLC SINGLE MEMBER FOR CA.

NOW I HAVE YOUR PART: 

A single-member LLC is a disregarded entity which means treated as if it does not exist for Fed tax filing and is when you use Sched C for the Fed form 1040. Since LLC is a State construct, your State may have different ways to handle this. This is Self-Employed, in that you and your business have no separate entity. You are your business.

A K-1 already is the end result of a separate business entity's tax filing preparation. It won't be used to make a Sched C for the same business.

ABOVE this is what I am telling. The return of LLC state part is completed. But in return I have SCHEDULE K (NOT K1) THAT IT HAS 3 COLUMNS, ON COLUMN (b) it says: Amount from federal k(1065) and the amount on there is NET INCOME ON SCH C OF FEDREAL. MY QUSTION: WHY IT IS GENERATED,  SCHEDILE K , Members' Shares of income, Deduction, Credit, etc SINCE 568 BOOKLET SAYS SHOULD NOT BE OTHERWISE WE HAVE MORE THAN $300000 INCOME.

[qbteachmt]

I was noting the problems with the reply from @shf1957 

[HOPE2]

I need a help to find my answer about schedule K on single member LLC  CA RETURN ( SCHEDULE C IS FORMED ON FED) what is the reason schedule k (NOT K1)generated for this?

[HOPE2]

Hi @Just Lisa Now, COULD YOU PLEASE HELP ME. THANK YOU