Taxpayer w2 with LLC for dependent

[rose323]

I have a client who usually files with a W2 and one dependent. Now she has an LLC for her daughter for a small T-shirt business, that has more losses than gains. How would this work on a regular 1040? The taxpayer wanted to elect the sole proprietor option. A bit confused since it is the daughter's LLC. How would I set this up showing it is daughter's LLC. First time working with an LLC.

[abctax55 · Accepted solution]

The daughter's income or loss from the disregarded LLC goes on the daughter's tax return.  NOT on her mother's return.  

Just like any other income of a 'dependent' .

[rose323]

Ok two separate returns. Got it. Her age is 17.