Partnership tax returns for sellers who run the store together.
A partnership or multi-member LLC files Form 1065 each year and gives each partner a Schedule K-1. We prepare both from the books we close every month, with your 1099-K tied out and inventory carried into cost of goods sold. $899 a year with a bookkeeping plan, one state return included.
Free books review · written quote · every return approved by you before it is filed
Form 1065 draft and partner shares
| Net receipts, all channels | 512,600.00 |
|---|---|
| Cost of goods sold | (231,400.00) |
| Gross profit | 281,200.00 |
| Fees, ads, shipping and other expenses | (161,200.00) |
| Ordinary business income | 120,000.00 |
| Expenses tied to the ledger | 161,200.00 ✓ |
| Partner A · Schedule K-1 · 50% | 60,000.00 · K-1 |
| Partner B · Schedule K-1 · 50% | 60,000.00 · K-1 |
Also checked 2026
- Each partner's capital account ✓
- Draws kept out of expenses ✓
- 1099-K gross tied to sales ✓
- Year-end inventory counted ✓
15th day of the 3rd month, calendar year; next business day if it falls on a weekend or legal holiday
Illustrative figures — demo store, not a client
You own the store with a partner.
Partnerships and LLCs with two or more members that are classified as partnerships.
One return for the business, one K-1 for each partner.
The partnership reports; the partners pay. Both sides start from the same closed books.
The business reports, the partners pay
The IRS describes Form 1065 as an information return. The partnership doesn't pay income tax; its profit or loss passes through to the partners, who report their shares on their own returns.
Read: does an LLC get a 1099? →A Schedule K-1 for each partner
Each partner gets a Schedule K-1 showing their share. The IRS charges a penalty for each K-1 not furnished when due, so we prepare them with the return.
Your 1099-K, tied out from the books
The IRS says the gross amount on a Form 1099-K isn't adjusted for fees, credits, refunds, shipping or discounts. We start from that same gross figure and show every deduction down to your payouts, so the return reports what you actually earned.
Read the answer →Inventory and cost of goods sold
When merchandise is an income-producing factor, the IRS instructions generally have you count inventory at the start and end of the year. We carry your counted stock and landed cost straight into the cost of goods sold.
Read the answer →From closed books to K-1s your partners can file with.
Prepared, reviewed, and approved by you before it is filed.
- Year-end close and inventory count January
- 1099-K tied to recorded sales January
- Form 1065, with cost of goods sold Yearly
- A Schedule K-1 for each partner Yearly
- One state return Yearly
- Partner capital accounts rolled forward Yearly
- Form 7004 extension by the due date, when needed As needed
Your books close by day 15 of each month, which matters most for a March due date.
Profit & Loss — September
| Amazon sales | 38,420.00 |
|---|---|
| Shopify sales | 21,760.00 |
| eBay sales | 4,310.00 |
| Net sales | 64,490.00 |
| Cost of goods sold | (23,190.40) |
| Marketplace fees | (9,874.15) |
| Gross profit | 31,425.45 |
Sample · illustrative figures · not a client
Partnership returns, priced per year.
Form 1065 is $899 a year with a bookkeeping plan, or $1,399 on its own, with one state return included. Each extra state is $149; any fee a state itself charges is separate. Each partner's own Form 1040 can be added. Yours is confirmed in writing after your free books review.
| Return | With a plan | Tax only |
|---|---|---|
| Form 1065 partnership returnOne state return included; a Schedule K-1 for each partner · per year | $899 | $1,399 |
| Owner's Form 1040Your personal return alongside a partnership or S corporation return · per owner, per year | $349 | $499 |
| Each extra state returnEach further state return filed alongside your federal return · per state, per year | $149 | $149 |
| Extension of time to fileForm 4868 or Form 7004, by the regular due date | Included | |
| 1099-K reconciliationEach Form 1099-K tied to your recorded sales | Included | |
| Prior-year or missed returnBooks for the year caught up first | That year's return price, plus catch-up books at $149 a month behind | |
Catch-up bookkeeping
Behind on your books? We bring the missing months current first; a March due date leaves little room. See catch-up →
Four steps to books you can trust.
Free books review
You send the access invitations. We look at where your books stand.
Quote in writing
Your plan and price, before you commit to anything.
Catch-up
Missing months brought current and reconciled.
Monthly close
Books closed every month, reports in your inbox.
Your return starts in the books we already keep.
We prepare from your own QuickBooks Online or Xero file, with settlements brought in through A2X or Link My Books.
Works with
Product names belong to their owners.
Answers for seller partnerships
Does an LLC get a 1099?
It depends on how the LLC is taxed.
Read the answer → AnswerWhy doesn't my 1099-K match what I actually made?
Gross payments before fees and refunds, and how to tie it out.
Read the answer → AnswerHow to calculate cost of goods sold for an online store
Beginning inventory, purchases, ending inventory, with landed cost.
Read the answer → AnswerMonths behind on your books? What happens and what to do
Why missing months come first, before any return.
Read the answer →Self-employment tax calculator →Quarterly tax calculator →
Behind on your books? See catch-up bookkeeping →Get my free books review →Or check your books yourself with the free self-check →
Sources
- IRS — Instructions for Form 1065 (2025) · fetched 2026-10-20
- IRS — Partnerships · fetched 2026-10-20
- IRS — Instructions for Form 7004 (Rev. December 2025) · fetched 2026-10-20
- IRS — What to do with Form 1099-K · fetched 2026-10-20
- IRS — Instructions for Form 1120 (2025) · fetched 2026-10-20
Partnership return questions
Does my multi-member LLC file Form 1065?
Generally yes. An LLC with more than one owner is classified as a partnership unless it elected to be taxed as a corporation, and every domestic partnership files Form 1065, with limited exceptions such as a year with no income and no deductions or credits.
When is Form 1065 due?
By the 15th day of the 3rd month after the tax year ends: March 15 for a calendar year, moved to the next business day when it falls on a weekend or legal holiday. For 2025 returns that was March 16, 2026.
Can we get more time?
Yes. Form 7004, sent by the regular due date, gives an automatic extension of time to file, generally 6 months. It does not extend the time to pay tax.
Does the partnership pay the tax?
No. Form 1065 is an information return. The partnership's profit or loss passes through to the partners, who report their shares from their Schedule K-1 on their own returns.
Do you prepare returns in my state?
Yes. We prepare partnership returns for businesses in 49 states: every state but Nevada. One state return is included; each extra state is $149.
How much does a partnership return cost?
$899 a year with a bookkeeping plan, or $1,399 on its own, with one state return included. Each extra state is $149. A partner's Form 1040 is $349 with a plan.
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