How Do I Know How Many K-1s Need to Be Prepared?

Easy... # of owners = # of K-1s

Each partner or S corp shareholder will require a K-1 from the partnership/S-corp. All the information included within the K-1 is to be reported by each respective owner in order to report the income on their personal tax return. Flow-through entities such as partnerships and S-corps do not pay taxes. Rather, the partners/shareholders within the entities are responsible for their share of the liability.