Which turbotax for LLC [Real Research]

Last updated : Aug 20, 2022
Written by : Lazaro Mccollin
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Which turbotax for LLC

Which TurboTax should I use for business?

TurboTax has two products to serve business owners—TurboTax Home & Business is designed for sole proprietors and 1099 contractors, while TurboTax Business helps you prepare taxes for corporations, partnerships and LLCs.

What is the best taxation type for an LLC?

The best tax classification for an LLC depends on whether you want your business profits to be taxed at your personal income tax rate, or at the corporate tax rate. If you'd prefer personal tax rates, you can classify it as a disregarded entity or as a partnership. Otherwise, you can classify it as a corporation.

How do I know which TurboTax to use?

For only the most basic situations: TurboTax Free Edition. Best TurboTax for homeowners: TurboTax Deluxe 2021 Tax Software, $39 (regularly $49) Best TurboTax for stock and crypto investors: TurboTax Premier 2021 Tax Software, $69 (regularly $89) Best TurboTax for freelancers: TurboTax Self-Employed, $119.

Does TurboTax home and business include Form 1065?

Due Dates for Form 1065 are: March 15, 2022 (September 15, 2022 with extension) for 2021 tax returns. You can file Form 1065 using TurboTax Business.

Does TurboTax home and business include LLC?

An LLC can help reduce your liability without reducing your freedom to run your business as you see fit. And we have you covered at tax time, with TurboTax Home & Business for single-member LLCs, and TurboTax Business for multiple-member LLCs.

Do I file LLC and personal taxes together?

Single member LLCs are typically treated the same as sole proprietorships. The IRS disregards the LLC entity as being separate and distinct from the owner. Essentially, this means that the LLC typically files the business tax information with your personal tax returns on Schedule C.

How do I file taxes for my LLC?

If the LLC is a corporation, normal corporate tax rules will apply to the LLC and it should file a Form 1120, U.S. Corporation Income Tax Return. The 1120 is the C corporation income tax return, and there are no flow-through items to a 1040 or 1040-SR from a C corporation return.

How does an LLC avoid paying taxes?

A general Corporation making a Subchapter “S” Election or an LLC with or without a Subchapter S Election pays no federal tax on its taxable income and no employment taxes on its distributions to stockholders.

Should my LLC be taxed as an S-Corp?

Although being taxed like an S corporation is probably chosen the least often by small business owners, it is an option. For some LLCs and their owners, this can actually provide a tax savings, particularly if the LLC operates an active trade or business and the payroll taxes on the owner or owners is high.

What's the difference between TurboTax and TurboTax Deluxe?

The deluxe version is only about support. Their free version includes much of what is included in TurboTax Premier (investments, rental income) and Home & Business (1099 income and expenses). You can see our full review of FreeTaxUSA for more.

Do I need deluxe or premier TurboTax?

Choose the TurboTax Deluxe edition if you are looking for deductions related to your job or home ownership. For deductions associated with stocks or rental properties, choosing the TurboTax Premier would be the best option. If you have a home business or are self-employed, TurboTax Home and Business would be ideal.

Is TurboTax Deluxe same as standard?

The same four tiers exist though they have some different names. As with the CD, Basic is for simple tax filings and includes e-filing. As with the CD, Deluxe includes added features relating to deductions. As with the CD, Premier includes features in Deluxe plus features relating to rental properties and investments.

Can I file my business taxes separate from my personal taxes?

Can I File My Personal and Business Taxes Separately? You can only file your personal and business taxes separately if your company it is a corporation, according to the IRS. A corporation is a business that's seen as an entity separate from its owner(s) that pays its own tax.

Does TurboTax Deluxe include Schedule B?

Yes. TurboTax Deluxe handles Schedule B just fine to take care of all your interest & dividends. It likewise includes Schedule D. If you need extra help with your sales of stocks and the calculation of cost basis, TurboTax recommends an upgrade to Premier.

How do I add form 1065 to TurboTax?

  1. Click on Federal Taxes (Personal using Home and Business)
  2. Click on Wages and Income (Personal Income using Home and Business)
  3. Click on I'll choose what I work on (if shown)
  4. Scroll down to Business Items (Business Investment and Estate/Trust Income using Home and Business)

Is TurboTax self-employed the same as TurboTax Business?

What is the difference between the Home and Business and Self-Employed versions of TurboTax? They are basically the same thing. "Home and Business" is the name of the CD/downloaded version and "Self-Employed" is the name of the Online version.

Why do I need deluxe TurboTax?

If we detect that your tax situation requires expanded coverage, like deductions for owning a home, unemployment income, or self-employment income, we'll prompt you to upgrade to a version that supports the forms you need so we can maximize your tax deductions and ensure you file an accurate return.

What are the different versions of TurboTax?

Tax Return Access: Included with all TurboTax Free Edition, Deluxe, Premier, Self-Employed, TurboTax Live, TurboTax Live Full Service customers and access to up to the prior seven years of tax returns we have on file for you is available through 12/31/2023.

What are the 2 main advantages of having an LLC?

  • Limited Personal Liability.
  • Less Paperwork.
  • Tax Advantages of an LLC.
  • Ownership Flexibility.
  • Management Flexibility.
  • Flexible Profit Distributions.

How do I pay the $800 franchise tax?

The state requires corporations to pay either $800 or the corporation's net income multiplied by its applicable corporate tax rate, whichever is larger. You may pay the tax online, by mail, or in person at the California Franchise Tax Board Field Offices.

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Which turbotax for LLC

Comment by Yetta Carillo

okay how to file your taxes as an llc owner let's discuss it now in order to do this we have to break this video down into two sections because you have the single member llc and then you have the multi-member llc and although they are both limited liability companies or llcs the tax returns are prepared and filed a little bit differently and i want to make sure that you are filing your taxes correctly in 2022 so today i'll be going over what tax returns you need to file as an llc owner what you need to record and what you need to put in your tax return how to pay your current and future taxes and any tips and faqs along the way so you stay out of trouble with the irs so if all that sounds good to you make sure you like this video while the intro plays hey there and welcome to our channel i'm sean with life accounting the accounting firm that is dedicated to helping you save on taxes and building more wealth and also i want to say thank you to everyone who has been subscribing and joining our channel we really appreciate the support and it gives us the positive reinforcement to continue making youtube videos alright so step number one what tax return do you need to file as an llc owner well as i mentioned it depends on what type of llc you have let's go over all three so you have a single member llc which means you are the sole owner of your limited liability company and you have no partners that means you will need to file your taxes using forms schedule c and schedule se and that can be found on the us 1040 the individual income tax return now the schedule c portion is used to report the income and expenses you incurred as a part of your business schedule se is also required to be included with your tax return as a single member llc because it is used to calculate your self-employment tax liability and schedule se stands for self-employment now i'll break down exactly what goes on as schedule c in just a second but before we do let's talk about the multi-member llc now if you have a multi-member llc that means you have at least one other partner in your business so there are at least two llc members if that's you then what you guys need to do is file u.s form 1065 the partnership return of income okay this form allows you to clearly allocate the portion of income and losses to each partner hey sean look i can split my profits with myself okay kind of like that now this form must be filed by the business tax deadline which is usually march 15th now there are about three pages on the 1065 forum which covers all your income and expenses as well now lastly if you have an llc regardless of if it is a single member llc or a multi-member llc and you have elected to be taxed as an s-corporation which by the way being taxed as an s-corporation allows you to eliminate some of the self-employment tax which is great for businesses who are making at least seventy thousand dollars in net income anyway llcs who have been elected to be taxed as an s corporation need to file us form 1120s the income return for s corporations and this form mainly ensures that owner employees are paying themselves a reasonable salary and calculate the distributions earned from the company this tax return also must be filed by the business tax deadline which is usually march 15th now llc partnerships in s corporations still need to file a normal 1040 form for their individual tax purposes as well alright so now that you know which tax forms you need to file let's move into number two what you need to record on your tax return now the tax code and the irs are very simple okay they want to know who you are and they want to know what integrity might i add how much money you made and what percentage of that should be allocated towards your taxes and that's the case for every business regardless of which tax return you need to file which by the way if you need professional assistance with tax planning and tax preparation then consider working with our team there will be a link in the description below where you can sign up for more information so the next step step number two for every llc owner is to record information about you and your business on your tax return you're gonna need to record stuff like your business name your business address your business ein number your principal business or profession like what you sell your principal business code or activity code your accounting method if you materially participated in the operations of the business if you just started or acquired the business and if you needed to file any 1099 forms as well as any other important information about your business the irs will ask you additional questions so they know everything there is to know after that then you can move into step number three and look at the next section on the schedule c general partnership form an 1120s tax form which is income reporting in this section the irs wants to figure out what your gross income was for your business now you may receive one or multiple 1099 miscellaneous forms or 1099 net forms to report exactly how much income you made and if you had a lot of online sales then you may also receive a 1099k form to report your income with as well hey sean look i'm reporting all my income forms okay kind of like that now once you have all your income reported then it's time to move on to step number three record your qualified business expenses now most platforms and companies make it pretty easy to find out what your gross income was for the year but expenses well not so much okay it's up to you to make sure you are tracking or bookkeeping all your expenses throughout the tax year now once you have all your expenses and transactions categorized and organized then you can move on to step number four and start recording your expenses on your tax return okay you're going to want to record any asset purchases that you made throughout the tax year any direct qualified expenses you spent money on such as advertising fees meals employee benefits etc and if you had cost of goods so you want to make sure you complete that section as well as well as any vehicle expenses you may have incurred as well now once you have listed all your qualified expenses or tax deductions or tax write-offs then you will arrive at your net income which will determine your total taxable income what tax bracket you fall into and what taxes you need to pay if you haven't already done so and all of that is calculated pretty quickly when you file on the 1040 form with a schedule c after that then you can move into step number five which is to go ahead and record any other individual activity on your tax return and then file your taxes however if you completed step number four within a 1065 partnership tax return or an 1120s tax return then step number five is for you to obtain your k1 document okay this k1 document is used to distribute each partnership share of current income deductions credits and other special items on their tax return so basically you need to file your 1065 or your 1120s again by the business tax deadline which is usually march 15 and then file your k1 document on your

Thanks for your comment Yetta Carillo, have a nice day.
- Lazaro Mccollin, Staff Member

Comment by nalivc

in this video i'm going to help you identify which version of turbotax you need for your small business um i'm not sure why but in my opinion turbo tax makes this unnecessarily difficult and even furthermore if you've got a mac and not a pc you can't even use some of this software and they don't really clearly identify that for you up front so if you want to make sure you're using the correct software and you don't spend hours preparing your taxes just to find out oh my god you've been using the form this whole time you actually need another piece of software then stay tuned into this video all right with that being said if this is your first time watching my name is navi mirage i'm actually a cpa that produces content all over social media to help you save thousands of dollars in taxes so if you're not subscribed currently and you're watching on youtube i invite you to subscribe or follow me um so let me discuss what we're going to talk about here so it might be best if i just transition over to my computer now and i'll actually just show you what i'm talking about there is a massive difference between turbo tax self-employed and turbo tax business and in my opinion turbo tax doesn't do a good job of kind of letting users know what the differences are between these two so if you look here um and you go to just turbotax.com it's going to transition you to um this page right and so you've got this uh lady here with a beautiful smile on her face that's about to lead you down the wrong path if you're not paying attention okay so let's talk about turbo tax self-employed this is for businesses that are taxed as sole proprietorships alright so if you click file your own taxes and you go to products and pricing and you click for small business owners and freelancers if you were to click there it's going to take you here turbotax self-employed all right so this would be for the person that's you know just started doing business as their own name or maybe they took it one step further and they registered a trade name or sometimes it's called an assumed name or a dba that stands for doing business as this is the version you would use even if you formed a single member llc and you did not and i want to repeat this you did not make the s corp election with the irs for your single member llc then you'll be taxed as a sole proprietorship and you will use turbotax self-employed the self-employed version ultimately when you actually go through the steps and use this software you'll be preparing what's called a schedule c which is part of your individual tax return so let me quickly show you that i pulled up a schedule c um this says profit or loss from business for sole proprietorship and you can see here it's a schedule c which is part of form 1040. 1040 is your individual tax return which even if you're married and you're filing jointly it's still called an individual tax return all right but your filing status is married filing jointly so you could be um a freelancer a uber driver fiverr um you could be a youtuber a realtor plumber handyman an accountant a bookkeeper a landscaper etc this is the product you would use if you're taxed as a sole proprietorship and you can use it online you could start preparing just like it says here start preparing your taxes for free and then pay when you're about to file your tax return so you can kind of get acclimated with the software input all the numbers see how much you're going to owe without actually paying for the software that's turbotax self-employed okay let's move over to turbo tax business so if you're on the home page you would actually have to click cd slash download products click small business taxes and that would load this page uh sorry this page here turbo tax business so if your business is taxed as an s corporation a c corporation partnership or you formed a multi-member llc or a single member llc and you filed paperwork with the irs to have your single member llc or your multi-member llc taxed as an s corporation you want to use turbotax business now this is the software that will allow you to prepare an 1120s which is the tax return for ns corporation or form 1065 which is the tax return for a partnership or form 1120 which is the tax return for ac corporation for whatever reason and i could understand why there's a huge misunderstanding among new business and even old business owners who think they are self-employed right so they use the self-employed uh software when in reality uh they have an s or a c corporation or a partnership you'll notice here that you can't start using this online for free and pay when you're about to file like you can with the self-employed version you actually need to pay for this in advance and actually download the software to your computer now listen carefully if you're a mac user this is important all right turbo tax business is not available for macs it's pc only software so if you have a mac and you have an s corp or a c corp or a partnership don't pay for this turbo tax business is not for you you actually don't have a solution with turbotax and if you scroll down further on this page and you click requirements you'll see that it says down here um turbotax business is windows only if you've got a mac turbo tax business is not available for the mac so don't make that mistake i don't know why turbo tax hasn't figured that out yet why the software is not mac compatible in the year 2022 but it's not and i have a feeling a lot of you are going to make this mistake and might even pay for this and you have a mac and then you're stuck with the software all right now you may still be a freelancer or uber driver realtor plumber landscape or youtuber whatever and use turbotax business software but if you're doing so it's because either you're subscribed to my channel or you're getting good quality information somewhere else which teaches you that basically once your business is producing over 40 000 of profit a year you might want to start considering having it taxed as an s-corporation why because uh the s-corporation sort of strategy is a strategy that can save you thousands of dollars in taxes in specifically social security and medicare taxes i don't want to get into all that here in this video but uh there are many other videos that i've created on my youtube channel as well so if you're watching on youtube check out sort of the video library there um and learn about why you might want to be an s corporation or how it saves you money in social security and medicare taxes um now real quick i will let you know um that you know if you're not watching on youtube you're watching on another social media platform just visit my website it's navi mirage cpa.com and i'll pull it up here this is my website you'll go to it there's many resources here for you right there's a course that teaches you how to save thousands of dollars in taxes i don't really want to talk about that or promote that too much here just know that there's a course available i teach you all the strategies that i teach my very own clients that i work with on a monthly basis you can implement them al

Thanks nalivc your participation is very much appreciated
- Lazaro Mccollin

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