Form 1065, U.S. Return of Partnership Income, is the annual tax return that partnerships and multi‑member LLCs taxed as partnerships file with the IRS. It reports your business’s income and expenses for the year so that each business owner can receive their share of the profit or loss on a Schedule K‑1.

Lili helps you generate a Form 1065 using your categorized business transactions, so you can share it with your tax professional or use it as a starting point for your final return.

Who should use Form 1065?

You typically need Form 1065 if your business is taxed as a partnership, including:

• Multi‑member LLCs taxed as partnerships
• General or limited partnerships

If you are the only owner and your business is taxed on your personal return, you usually file a Schedule C instead of Form 1065. Your tax professional can confirm which return is right for you.

What Lili’s Form 1065 includes

For eligible account plans, Lili generates a Form 1065 using the income and expense activity that has been categorized in your business account.

The Lili‑generated Form 1065 includes:

• Business information such as the legal business name and address, based on your profile.
• Total business income for the year, based on deposits and categorized income.
• Business expenses organized into IRS‑aligned categories, based on how your transactions are categorized in Lili.
• A calculated ordinary business income or loss figure for the partnership.

If there are uncategorized transactions for the selected period, you will be prompted to categorize them so they can be included in the appropriate lines on your Form 1065.

How to create Form 1065 in the Lili Web App

To request or create your Form 1065 in the Web App:

• Go to the Main Menu at the top left of your dashboard.
• Select Reports & Statements.
• Choose Form 1065 and select the relevant tax year.
• Review the disclaimer and select GET STARTED.
• If prompted, categorize any remaining uncategorized income or expenses for that year so they are included correctly.
• Follow any additional on‑screen instructions to generate your Form 1065.

Once your Form 1065 is generated, you can:

• Click on the desired year.
• Use the options at the top right of the preview to Print or Download PDF.

How to create Form 1065 in the Lili Mobile App

To request or create your Form 1065 in the Mobile App:

• Open the main menu and tap Reports.
• Select Form 1065 and choose the relevant year.
• Read the disclaimer and tap GET STARTED if prompted.
• Categorize any remaining uncategorized transactions for that year.

After the Form 1065 is generated, you will see a preview image of the form. Use the options above the preview to Share the document through your device’s native sharing tools.
 

Important notes

• Lili does not file Form 1065 with the IRS on your behalf.
• The report is based solely on the transactions in your Lili business account. If you have other business accounts or records, share everything with your tax professional.
• For guidance on how to complete or file your final Form 1065, or how to handle K‑1s for multiple owners, please consult a qualified tax professional or the IRS instructions.

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