On your Form 1040, you’ll include the information from your K-1 on Part II of Schedule E.įorm 1065 and Schedule K-1 are due by March 15. It will also need to provide a Schedule K-1 to each member of the LLC, which includes each partner’s share of income, deductions, and credits. The LLC will need to fill out a partnership information return, Form 1065. Filing gets a little more complicated with a multi-member LLC versus when there’s only one LLC member. If more than one person owns the LLC, the default tax status is to treat it as a partnership. These tax returns are due by April 15, along with your personal tax return. There is an exception here: If your LLC owns rental properties, the information would be included on Part I of Schedule E rather than Schedule C. That amount will then be included as income or loss on your personal tax return Form 1040. On Schedule C, you’ll report the income and expenses from your business. To submit and pay taxes as a single-member LLC, you’ll file Schedule C with your personal income tax return. Any profits or losses pass through to you as the owner.

So your tax status will look very similar to a sole proprietorship (i.e., the business isn’t separate from the owner for tax purposes).

If you are the one and only member of your LLC, the IRS will treat your tax status as a disregarded entity (unless you elect otherwise). But not to worry, the below section covers the income tax requirements for all three types. If you don’t make a choice, by default, your LLC will be taxed as a sole proprietorship or partnership. It can either be taxed as a sole proprietorship (one owner), partnership (two or more owners), or corporation (any number of owners). A business owner can choose how to have their LLC taxed. The IRS will assign a default tax status based on whether just one person or multiple people run the LLC. Unfortunately, that doesn’t mean you get to skip paying income taxes altogether. You create and register an LLC in a state, but as far as the IRS is concerned, there’s no income tax form for an LLC. They don’t actually recognize LLCs as an entity. Want to pay income taxes for your LLC? The IRS will throw you a bit of a curveball.

Forms and taxes for small business llc