Buyer's Guide - If you need to file a return for an LLP
An LLP is similar to an LLC. The primary difference lies in the amount of liability protection you receive; it's somewhat less for an LLP. In some states, only certain types of professional businesses, such as attorneys or accountants, can set up LLPs. Like an LLC, an LLP isn't considered "separate" from its owners for tax purposes.
If you have an LLP, choose TurboTax Business as you'll need to file Form 1065 to report your LLP income, and you must provide a Schedule K-1 to each LLP partner. TurboTax Business contains every form you'll need to prepare Form 1065 and the associated Schedule K-1 forms. Form 1065 is used to file returns for both partnerships and LLPs, so you'll often see Form 1065 referred to as a "partnership" return.
If you keep your LLP books in QuickBooks, TurboTax Business will transfer your QuickBooks income and expenses into the right forms.
TurboTax Business also includes the W-2 / 1099 Reporter, which helps you prepare W-2 and 1099-MISC forms for your employees and contract workers.
- Choose TurboTax Business for your small business taxes.
What about your personal income tax return?
You'll also need to buy a personal TurboTax program to prepare your own Form 1040 for this year; Form 1040 isn't included in TurboTax Business. As an LLP member, you should use either TurboTax Deluxe or TurboTax Premier. Either product will guide you through entry of your LLP's Schedule K-1 and will also ask you about additional expenses you paid with your own funds rather than LLP funds. You won't want to miss out on taking these additional deductions!
Not sure which to choose? Let's take a look at your personal tax situation to help you decide.
