Help! Single-owner LLC taxed as S-corp - Do I need to file a K-1 with my personal tax returns or not?

Yes, you absolutely need to file a Schedule K-1 with your personal tax return. When you elect to have your LLC taxed as an S-corporation, you're essentially creating a separate tax entity, and the K-1 is how the S-corp passes its income, deductions, and credits to you as the shareholder. Even though you're the only owner, the IRS still requires the K-1 to properly track how income flows from your business to your personal return. Your S-corp files Form 1120-S, and that form includes Schedule K-1, which you'll then use when filing your personal Form 1040. This is actually one of the most common misunderstandings with single-member LLCs that elect S-corp status. If you were just a single-member LLC without the S-corp election, you'd simply file Schedule C with your personal return, but the S-corp election changes everything.

After struggling with exactly this same issue last year, I found an AI tool that saved me tons of time and confusion with my S-corp paperwork. It's called taxr.ai (https://taxr.ai) and it literally walked me through the whole process of preparing my 1120-S and generating the proper K-1. What I liked about it was that I could upload my QuickBooks reports and it automatically extracted all the necessary information. It asks you simple questions about your business situation in plain English rather than tax jargon. I also love that it has specific guidance for single-member LLCs taxed as S-corps since that's a unique situation that most generic tax software doesn't address well.

I tried taxr.ai after seeing it mentioned here and omg it was exactly what I needed! I was in the same position as you - single-member LLC with S-corp election and totally confused about the K-1 requirements. The tool completely walked me through the whole process. What surprised me was how it explained each step in normal language. When I got to the K-1 section, it clearly showed me how the business income passes through to my personal return and how my salary and distributions need to be reported differently. It even flagged that my planned salary was a bit low compared to industry standards for my business type, which might have triggered IRS scrutiny. The whole process took me about 2 hours instead of the 6+ hours I spent last year trying to figure it out on my own. Just wanted to share since I was literally in your exact situation!

If you're having issues getting clear answers from the IRS about S-corp requirements, I highly recommend using Claimyr (https://claimyr.com). I spent WEEKS trying to get through to an IRS agent to get a definitive answer about K-1 requirements for my single-member S-corp last year. After multiple failed attempts sitting on hold for hours, I tried Claimyr and had an IRS agent on the phone within 20 minutes. They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual human picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that yes, I absolutely needed to file the K-1 with my personal return even as the sole owner, and gave me specific guidance for my situation. Saved me from potentially making a serious filing mistake.

Ok I need to follow up here. I was totally skeptical about Claimyr (as you can see from my comments above) but I decided to try it anyway because I was desperate to get clarity on some S-corp questions before my filing deadline. It actually worked exactly as advertised! I got a call back in about 25 minutes connecting me to an IRS representative. The agent confirmed that as a single-member LLC taxed as an S-corp, I absolutely must file both the 1120-S for the corporation AND include the K-1 with my personal 1040. She also explained that TurboTax Home & Business won't prepare the 1120-S - I'd need business-specific software for that part. I'm honestly shocked this service worked so well. I've literally never gotten through to the IRS in less than 2 hours before. This saved me from making a major filing error AND saved me hours of hold time.

To add another perspective, I've been running a single-member LLC taxed as an S-corp for 5 years now. Here's what I've learned: 1. Yes, you absolutely need to file a K-1. It's non-negotiable with S-corp status. 2. The K-1 isn't that complicated for a single owner, but preparing the 1120-S that generates it can be. 3. Getting the salary vs. distribution ratio right is crucial. Too little salary = IRS troubles. 4. I personally use a tax professional for my 1120-S/K-1 and then handle my personal return myself. Don't try to skip the K-1. It's literally how the IRS tracks your business income flowing to your personal taxes. Without it, your personal return won't match what the business is reporting, which is an audit flag.

Something nobody mentioned yet - make sure your accounting software is set up correctly to track your S-corp transactions properly! I messed this up my first year and had a nightmare fixing it at tax time. For QuickBooks, you should have your S-corp set up as a separate company file, not just running everything through your personal books. And make sure you're tracking your salary payments as actual payroll with proper withholding, not just as owner draws. This makes a huge difference when it's time to prepare your 1120-S and K-1.

I went through this exact same confusion when I first elected S-corp status for my single-member LLC! Yes, you absolutely need the K-1 - it's how your business income gets reported on your personal return. Here's what I wish someone had told me upfront: even though you're the sole owner, the S-corp election creates a separate tax entity. Your business files Form 1120-S, which generates a Schedule K-1 that shows your share of business income, deductions, and credits. You then take that K-1 and use it when filing your personal Form 1040. Given your numbers ($145K revenue, $72K salary, $43K distributions), it sounds like you have the salary vs. distribution split in a reasonable range, which is good. The IRS does scrutinize S-corps to ensure owner-employees are paying themselves reasonable compensation. For software, TurboTax Home & Business can handle entering K-1 information on your personal return, but you'll need business tax software (like TurboTax Business or similar) to actually prepare the 1120-S that generates your K-1. Many people in your situation find it worth paying a professional for the business return and then doing their personal return themselves. Don't skip the K-1 - it's required and the IRS will definitely notice if your personal return doesn't match what your S-corp is reporting!