1When this applies
An LLC with two or more members is usually taxed as a partnership. Instead of Form 5472 with a pro forma 1120, it files Form 1065 and gives each member a Schedule K-1 with their share of the year, by March 15 for calendar-year LLCs. Your accountant confirms how your LLC is taxed.
2Set up the members
Open Members and click Yes, set up the members. Invollc replaces the Form 5472 deadline with the Form 1065 one. Add each member with their ownership; together they should make 100%. For someone who joined or left during the year, add the dates: their share is counted only for the days they were a member.
The tax ID (SSN, EIN or foreign tax number) is stored encrypted and never shown again after you save it.
3Money in and out
On each member, click Record money in or out: money they put in, money they took out, loans to the LLC and their repayment. Other currencies are converted to USD at the rate of the day.
4Share of the profit and the K-1 summaries
Invollc takes the year's profit (income minus expenses, in USD) and splits it by ownership and days. Each member gets a page with their share, what they put in and took out, and the change in their capital. Members who are not US persons are flagged, because the LLC may have to withhold tax on their share.
The shares and the PDF unlock once your accountant has checked them. They can also upload the K-1s they prepared, which then replace ours.
The summaries collect your records. Special allocations, guaranteed payments, separately stated items and withholding (Forms 8804 and 8805) are for your accountant. Part of Professional.
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