what is a K-1 form?

Question

maybe I should ask the question.....does a k-1 form prove partnership in a company?

Answer 1

A K-1 form demonstrates that you got income from a partnership. It doesn't necessarily prove that you are currently a partner, but a letter on the company's letterhead could be used to verify that.

Answer 2

If you are a partner in a partnership (or a member of an LLC that has elected to pay taxes as a partnership), the partnership is required to give you a Schedule K-1 that you should use in preparing your tax return.

Does a K-1 prove your partnership status? Yes and no. It shows that the partnership counts you among those who have an economic interest in the partnership. It does not necessarily mean that you have a management interest in the partnership or the right to transact business on behalf of the partnership. These details are usually spelled out in the Partnership Agreement.