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Old 09-02-2015, 02:50 PM
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LLP - Was I required to file K1/1065?

I'm in the process of having a home loan underwritten, and some tax documents are being requested of me that I'm unsure whether or not I filed or was even required to file.

I maintained an active LLP for 2013-2014, and my originator is requesting Schedule K1s. Due to the business being an LLP, I don't believe I was required to file Schedule K1s. I have also read from multiple sources that an LLP can choose to "pass through" its tax liability to its members, and thus not be required to file a 1065. This was my and my partner's intent, as it was a very loose/informal partnership created just to allow us to work together under a formal name.

All this to say, I'm unsure if I'm in the clear here or not.



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Old 09-03-2015, 01:20 PM
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Originally Posted by joshlevinson View Post
I'm in the process of having a home loan underwritten, and some tax documents are being requested of me that I'm unsure whether or not I filed or was even required to file.

I maintained an active LLP for 2013-2014, and my originator is requesting Schedule K1s. Due to the business being an LLP, I don't believe I was required to file Schedule K1s. I have also read from multiple sources that an LLP can choose to "pass through" its tax liability to its members, and thus not be required to file a 1065. This was my and my partner's intent, as it was a very loose/informal partnership created just to allow us to work together under a formal name.

All this to say, I'm unsure if I'm in the clear here or not.
I maintained an active LLP for 2013-2014, and my originator is requesting Schedule K1s. Due to the business being an LLP, I don't believe I was required to file Schedule K1s. I have also read from multiple sources that an LLP can choose to "pass through" its tax liability to its members,=========>>Exactly correct; An LLP is a form of ownership in which all the partners receive limited liability protection. However, an LLP is similar to a general partnership in that all the partners can take an active role in managing the day-to-day affairs of the business.so you need to issue Sch K1s of 1065 to each partner and need to file form 1065 with the IRS




and thus not be required to file a 1065. This was my and my partner's intent, as it was a very loose/informal partnership created just to allow us to work together under a formal name.

All this to say, I'm unsure if I'm in the clear here or not========>OK so as you said, your biz was an active LLP for 2013-2014, then as a LLP. You need to issue SCh K1s of 1065 and need to file form 1065 as LLP be treated as Partnership Firms for the purpose of Income TaxUNLESS the LLP elects to be taxed as a PA S corp or C corp;



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Old 09-03-2015, 01:45 PM
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Originally Posted by joshlevinson View Post
I maintained an active LLP for 2013-2014, and my originator is requesting Schedule K1s. Due to the business being an LLP, I don't believe I was required to file Schedule K1s. I have also read from multiple sources that an LLP can choose to "pass through" its tax liability to its members, and thus not be required to file a 1065. .
Yes you are; LLPs like LLCs are entities that elect to pass biz income, losses, deductions, and credits through to their partners for federal tax purposes. Then partners report the flow-through of income and losses on their personal tax returns 1040s and are assessed tax at their individual income tax rates..



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