If you have a single-member LLC, you'll file as a sole proprietorship using Schedule C (unless you choose to treat the LLC as a corporation).Ī rather sticky issue for LLC members is whether they owe self-employment tax on their share of the company's earnings. At tax time you'll use Form 1120: Corporation Income Tax Return, or the short form, 1120-A. If you choose to have your LLC file taxes as a corporation, you must tell the IRS by filing Form 8832: Entity Classification Election. ![]() These amounts are then included on the member’s personal tax return. Schedule K-1 reports the member’s share of LLC income, deduction, and tax credit items. ![]() The annual Form 1065 must also include a Schedule K-1 for each member. So at tax time to keep the IRS happy an LLC files Form 1065: Partnership Return of Income. That means the LLC itself pays no tax, but taxable profits and deductible losses are passed through to the members,who are treated as partners under the tax rules. The IRS assumes that LLCs with more than one member are partnerships for tax purposes.
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