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Generating and e-filing a single member LLC in ProSeries

SOLVEDby IntuitProSeries Professional47Updated July 13, 2022

Before you start:

  • ProSeries Basic doesn't support Single Member LLCs.
  • Most states require the federal 1065 and state to be installed to access the SMLLC forms from the Individual Return.
  • You can only e-file one LLC per tax id number.
  • California Form 568 can be generated from a federal Schedule C, Schedule E, or Schedule F.
  • New York Form IT-204-LL can be generated from a federal Schedule C.
  • Tennesee Form FAE 170 can be generated from a federal Schedule C.
  • Texas Franchise tax returns can be generated from a federal Schedule C, Schedule E, or Schedule F.
  • Starting in tax year 2016 PA no longer requires the RCT-101 for LLCs.
  • For taxpayers filing a return with multiple LLCs with unique EINs, only one LLC can be e-filed at a time, complete the steps for the first business activity then see E-filing multiple single member LLCs below.
  1. From the Update menu, choose Select and Download New Products.
  2. For the state you need check the LLC (or IT-204LL) checkbox. ProSeries will check the correct federal and state forms. Do not uncheck any boxes for states you already have installed.
    State checkboxes selected on the Install screen.
  3. Select Next to download the needed forms.
  4. Once the download is complete select Install Now.
  5. Select Close when the install is complete and ProSeries will open.
  1. Open the Federal 1040 return.
  2. If you are planning on e-filing the LLC return:
    1. Open the Federal Information Worksheet.
    2. Scroll down to Part VI - Electronic Filing of Tax Return Information.
    3. Check the box for File state or city return electronically.
    4. In the grid selection choose CA Single Member LLC, TN Single Member LLC, TX Single Member LLC or check the box for Electronic Filing of Other Payments if filing the NY IT-204-LL.
      EFileSelectionsSMLLC-PCG-ProSeries.png
  3. Complete the federal tax schedule that is needed.
  4. Check the box towards the top of the schedule to indicate the state is being filed as an LLC.
    • You can generate a LLC from the Schedule C for CA, NY, TN or TX.
      Schedule C-SMLLC-PCG-ProSeries.png
    • You can generate a LLC from the Schedule E Worksheet for CA or TX.
      Schedule E with the LLC box checked
    • You can generate a LLC from the Schedule F for CA or TX.
      Schedule F with the LLC box checked
  5. From the File menu, select Go to State/City.
  6. For the state you may have multiple selections. To open the LLC forms select the state choice that does not say Individual and click OK.
    StateSelection-PCG-ProSeries.png
  7. Complete any entries needed on the state return.
  1. Once the return is complete run final review and correct any You Must Fix This errors.
  2. Go to the EF Center HomeBase view.
  3. Find the client. You'll see the Return Type for the state will show LLC return or NY pmt.
    EFCenter-PCG-ProSeries.png
  4. Select the state return your ready to e-file.
  5. From the E-File menu, select Electronic Filing, then Convert/Transmit Returns/Extensions/Payments.
  6. On the Electronic Filing Options screen select Convert and Transmit selected returns/extensions/payments and click Ok.
  7. If the Electronic Filing Transmission screen is dispalyed, read the warning and click Yes to e-file the return.
  • You can only e-file one LLC per return, per unique Employer Identification Number (EIN), all additional LLCs must be printed and filed by mail.
  • If a multi-state return is needed, the second state LLC will need to be created in a different return, with a unique EIN.
  • If the taxpayer and apouse each have an LLC in the same state the second LLC will need to be created in a different return, with a quiique EIN.

To generate and e-file the second LLC after the first LLC has been accepted:

  1. Open the Federal Information Worksheet.
  2. Scroll down to Part VI - Electronic Filing of Tax Return Information.
  3. Uncheck the box to File federal return electronically.
  4. If a different state is being e-filed, change the state selection in the State(s) table.
  5. From the File menu, select Save As to create a copy of the return.
  6. Open the Schedule C, E or F for the first LLC and un-check the LLC box.
  7. Open the Schedule C, E or F for the second LLC on the return and check the LLC box.
  8. Prepare the state Limited Liability Company tax return for the second LLC. 
  9. Save the return.
  10. Go to the EF Center HomeBase view. 
  11. Find the client. You'll see the Return Type for the state will show LLC return or NY pmt.
  12. Select the state return your ready to e-file.
  13. From the E-File menu, select Electronic Filing, then Convert/Transmit Returns/Extensions/Payments and continue with the e-file process.
  14. Repeat steps 1 through 13 for any additional LLCs the taxpayer needs to file.

When e-filing a single-member LLC return in ProSeries, the following error generates:

"Schedule K-1 Worksheet: Partner ID #-1 Must enter either a valid EIN, valid SSN, 'APPLD FOR', or 'FOREIGNUS' for at least two partners"

Why is this happening?

Typically a single-member LLC files a 1040 return. However, if the taxpayer needs to file as a 1065 return, the following rules apply:

  • Single-member LLCs are considered disregarded entities for federal tax purposes, meaning they aren't eligible to file a federal partnership tax return.
  • While ProSeries doesn't support e-filing the state single-member LLC return from the 1065 formset, the SMLLC may be prepared and filed from the 1040 module for sole proprietorships.
  • LLCs with one owner are treated as a sole proprietorship, unless an election is made for it to be treated as a corporation. The entity reports its income and deductions on the owner's federal income tax return.
  • The tax return for sole proprietorships that are single-member LLCs can be e-filed from the 1040 module.
  • To elect to be treated as a corporation, see Form 8832, Entity Classification Election for more information.

Refer to IRS Pub. 334 for more information.

When converting a single-member LLC for e-filing in ProSeries, the following error generates:

"<State Name> LLC: The error is: 202.  Electronic filing conversion failed."

How do I resolve this error?

The electronic conversion error occurs when the federal Schedule C isn't completed or isn't part of the return. In these few instances, Schedule E or Schedule F was prepared for filing.

 

ProSeries currently offers preparation of Schedule C LLCs for Pennsylvania, New York, Tennessee, and Texas, including electronic filing. Also, ProSeries doesn't support filing more than one Schedule C LLC.

Follow the steps below to file a Schedule C as a LLC:

  1. Open Schedule C.
  2. Mark the checkbox labeled If filing this Schedule C as an LLC in NY, PA, TN, or TX.
  3. Go to the applicable state return.
    • For example, Pennsylvania Corporation.
  4. Prepare and complete the state return.
  5. Save and transmit the return as normal.
 

If a Schedule E or Schedule F was prepared for filing, you won't be able to e-file Pennsylvania, New York, Tennessee, or Texas. The state return is ineligible for e-file. We recommend printing the return and mailing it.

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