What is the name of your state (only U.S. law)? FL
I'm doing our 1st return for a 2 member LLC. Very basic - $18k income, $15k in expenses. I put the $18k on line 1a on the 1065 (gross receipts) and put the $15k in expenses on line 20 - Other deductions, and made a separate statement breaking down the expenses (equipment, gas, supplies,etc). Our bottom line income was $3k. I split that 50/50 and put $1500 on Line 1 (Part III) Ordinary Income on each K-1 form. Is this correct? Are the expenses on the correct line? Should the income on the K-1 be under Self Employment earnings? We haven't paid ourselves any money yet. (We're a band and do it for the love of music, not the money!) It's my first return....I want to make sure we're doing it correctly.Thanks for your help!
I'm doing our 1st return for a 2 member LLC. Very basic - $18k income, $15k in expenses. I put the $18k on line 1a on the 1065 (gross receipts) and put the $15k in expenses on line 20 - Other deductions, and made a separate statement breaking down the expenses (equipment, gas, supplies,etc). Our bottom line income was $3k. I split that 50/50 and put $1500 on Line 1 (Part III) Ordinary Income on each K-1 form. Is this correct? Are the expenses on the correct line? Should the income on the K-1 be under Self Employment earnings? We haven't paid ourselves any money yet. (We're a band and do it for the love of music, not the money!) It's my first return....I want to make sure we're doing it correctly.Thanks for your help!