K-1 Ownership Linking connects a business entity (1065, 1120, 1120S, 8825, or 990) to its owners so ownership percentages and K-1 amounts stay in sync with each owner's binder.
Add an owner link
Open the business client's details page and find the K-1 Ownership Linking section.
Click + New K-1 Owner Link.
Choose an Owner Source:
Linked — pick an existing Tallyfor client. Tallyfor automatically sets the relationship type based on the business form: Partner (1065), Shareholder (1120/1120S), or Member (8825).
External — add an owner who isn't managed in Tallyfor (e.g., from an outside K-1). Enter their Name and Entity Type (required), plus an optional Display ID and TIN/SSN.
Enter the percentages and details (see below), then click Create.
Ownership, profit, and loss percentages
Each owner has three percentages: Ownership % (required), Profit %, and Loss %. When you first enter Ownership %, Profit and Loss sync to match — you can then adjust them independently (useful for special allocations).
A running total appears under each column. Totals can't exceed 100%; if they do, the total turns red and you won't be able to save.
Entity-specific details
1120 / 1120S shareholders: Joined date, Resident State, Ownership Capital $, Capital Acct BOY $
1065 partners: Partner Type (General Partner, Limited Partner, LLC Member), Joined date, Resident State, Capital Contribution $, Capital Acct BOY $
Managing external owners
External owners also have their own panel — External Owners — where you can click Add External Owner to record full details: identification, address, contact info, and their CPA / return preparer. External owners appear with an [External] tag wherever owners are listed.
To delete an external owner, first remove any ownership relationships they're part of — otherwise you'll see: "Cannot delete: this owner has active relationships. Remove them first."
How K-1 amounts flow
Once linked, K-1 amounts sync automatically from the business binder to each linked owner's binder. If you later delete a relationship that has linked binders, Tallyfor warns you which binders are affected; amounts already synced are preserved, but future syncing stops.