Need help with my 1st basic LLC return

[kigsby]

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!

 

[LdiJ]

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!

To be honest, you really shouldn't be trying to do this yourself the first time. You should really have a professional handle it and then if you want to use that return as a template for the future, you can do that.

 

[kigsby]

Can't afford it!

I would love to go and have the tax return done professionally, but just don't have the money. I thought it would be a simple return.

 

[tranquility]

While it is a simple return, it really would be best to get the template. What were your expenses for? Did you calculate them correctly? Did you buy any stuff?

As to your question at the end, if you work for money, would that be self-employment or ordinary income?

It shouldn't cost you that much for such a return.