Entity types and tax forms
A quick map of how sole props, partnerships, and S-corps file — and why it affects your books.
The short version
Your entity type decides which tax form your business files. It also affects how owner money is shown in your books.
Your business structure determines how you file:
- Schedule C is used by many sole proprietors and single-member LLCs to report business income on a personal return.
- Form 1065 is a partnership return for multi-member LLCs and partnerships.
- K-1 is the form that reports each owner's share from a partnership or S-corporation.
- Form 1120S is the business return for an S-corporation.
Your structure also affects owner money. Owner pay is payroll wages. Equity is the owner's stake in the business. Distributions are money owners take out that is not payroll.
Education, not tax advice
This is a general explainer. Your specific filing situation is handled by your Uplinq tax team and bookkeeper.
What this article will cover
- Schedule C vs. 1065 vs. 1120S, in plain English
- What a K-1 is
- Why entity type changes how your books are set up
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