Yup The verse as used was out of context.
The entire thought is
1 John 1:1-15 (Amplified Bible)
1 John 1
<sup class="versenum" id="en-AMP-30540">1</sup>[WE ARE writing] about the Word of Life [<sup class="footnote" value="[<a href="#fen-AMP-30540a" title="See footnote a">a</a>]">[
a]</sup>in] Him Who existed from the beginning, Whom we have heard, Whom we have seen with our [own] eyes, Whom we have gazed upon [for ourselves] and have touched with our [own] hands. <sup class="versenum" id="en-AMP-30541">2</sup>And the Life [<sup class="footnote" value="[<a href="#fen-AMP-30541b" title="See footnote b">b</a>]">[
b]</sup>an aspect of His being] was revealed (made manifest, demonstrated), and we saw [as eyewitnesses] and are testifying to and declare to you the Life, the eternal Life [<sup class="footnote" value="[<a href="#fen-AMP-30541c" title="See footnote c">c</a>]">[
c]</sup>in Him] Who already existed with the Father and Who [actually] was made visible (was revealed) to us [His followers].
<sup class="versenum" id="en-AMP-30542">3</sup>What we have seen and [ourselves] heard, we are also telling you, so that you too may <sup class="footnote" value="[<a href="#fen-AMP-30542d" title="See footnote d">d</a>]">[
d]</sup>realize and enjoy fellowship as partners and partakers with us. And [this] fellowship that we have [which is a <sup class="footnote" value="[<a href="#fen-AMP-30542e" title="See footnote e">e</a>]">[
e]</sup>distinguishing mark of Christians] is with the Father and with His Son Jesus Christ (the Messiah).
<sup class="versenum" id="en-AMP-30543">4</sup>And we are now writing these things to you so that our joy [in seeing you included] may be full [and <sup class="footnote" value="[<a href="#fen-AMP-30543f" title="See footnote f">f</a>]">[
f]</sup>your joy may be complete].
<sup class="versenum" id="en-AMP-30544">5</sup>And this is the message [the message of <sup class="footnote" value="[<a href="#fen-AMP-30544g" title="See footnote g">g</a>]">[
g]</sup>promise] which we have heard from Him and now are reporting to you: God is Light, and there is no darkness in Him at all [<sup class="footnote" value="[<a href="#fen-AMP-30544h" title="See footnote h">h</a>]">[
h]</sup>no, not in any way].
<sup class="versenum" id="en-AMP-30545">6</sup>[So] if we say we are partakers together and enjoy fellowship with Him when we live and move and are walking about in darkness, we are [both] speaking falsely and do not live and practice the Truth [which the Gospel presents].
<sup class="versenum" id="en-AMP-30546">7</sup>But if we [really] are living and walking in the Light, as He [Himself] is in the Light, we have [true, unbroken] fellowship with one another, and the blood of Jesus Christ His Son cleanses (removes) us from all sin and guilt [keeps us cleansed from sin in all its forms and manifestations].
<sup class="versenum" id="en-AMP-30547">8</sup>If we say we have no sin [refusing to admit that we are sinners], we delude and lead ourselves astray, and the Truth [which the Gospel presents] is not in us [does not dwell in our hearts].
<sup class="versenum" id="en-AMP-30548">9</sup>If we [freely] admit that we have sinned and confess our sins, He is faithful and just (true to His own nature and promises) and will forgive our sins [dismiss our lawlessness] and [continuously] cleanse us from all unrighteousness [everything not in conformity to His will in purpose, thought, and action].
<sup class="versenum" id="en-AMP-30549">10</sup>If we say (claim) we have not sinned, we contradict His Word and make Him out to be false and a liar, and His Word is not in us [the divine message of the Gospel is not in our hearts].
Basically it's saying the when we are following in JESUS footsteps, fellowshipping with the FATHER there is no sin in us. If we say we have fellowship with the FATHER and are walking in sin, we lie.
Again If we do sin and fall out of fellowship with FATHER we have JESUS who washes us clean again. If we are our of fellowship with FATHER and say we have no sin we are calling FATHER a liar
This verse says nothing at all about us fellowshipping with FATHER and being sinners. or living sinfully