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LLC tax deductions are the same as the deductions individual taxpayers can take on their taxes. This is because an LLC's income is treated as individual income on an LLC member’s taxes, based on the form the LLC takes. A single-member LLC has one owner or member and is treated like a sole proprietorship. A multiple-member LLC has more than one owner, and the income earned by the LLC is distributed in the same manner as is partnership income.
Tax Rates for Single- and Multi-Member LLCs
The single- and multi-member LLC pays up to the top individual tax rate of 35 percent. Income earned by the LLC is passed through to its members and treated as earned income for the purposes of income tax reporting. Any deductions allowed for an individual tax filer help reduce the total taxable income of the individual. These include medical expenses exceeding 7.5 percent of a taxpayer's adjusted gross income, deductions for contributions made to a health savings account and deductions for contributions made to a qualified charity. Consider working with a tax professional to take advantage of all the deductions available to you.
