2 member LLC taxes question

5 Replies

I formed 2 llcs in 2019. One is for me a partner with a multi family and the other is for me and another partner for a single family.

My question is, for tax purposes do we need to do anything else other than just declare our income and loses individually? Or do we need to fill any special LLC forms out (someone mentioned something about k-1 and another form I don't recall)

Thanks so much in advanced. First time doing taxes with an LLC

@Daniel Suarez

I think You need tax returns for the LLCs-do yourself a favor and get an accountant to help you at least initially-it will be money well spent. 

@Daniel Suarez

To echo @Carl Fischer , you should hire a CPA, to at least walk you through this the first year. My understanding is: 

When an LLC only has one member, it is a disregarded entity, but LLCs with more than one member are partnerships for federal tax purposes. You will need to file partnership tax returns (technically an 'information' return) and the LLC must issue a Schedule K-1 to yourself and your partners. The Schedule K income is what will be reported on your individual returns.

Thanks so much! I did finally get an accountant this year after what it seems like making many mistakes in the past 2 years. She's pretty busy ammending my taxes for the past 2 years though. I wasn't sure if these forms were more of a legal issues vs accountant issue. 

@Daniel Suarez As an investor I would recommend consulting and having your accountant as your best ally. He should be looking for your best economic interest for investment properties. Money well spent to protect yourself and the hard earned investment income you are trying to generate, if any initially.

Good question. Your CPA will need to prepare a K-10 for the partnership and it will generate a K-1 for each of you to identify what will go on your individual 1040. You need to hire a CPA or get TurboTax for LLCs to help you.