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The proper LLC tax form for your company depends on how you organized your LLC.
Different Types of LLC’s
Rather than being classified as a separate taxing entity, the IRS treats the LLC as a pass-through entity and taxation is based on the number of members of the LLC as follows:
With a single owner LLC, there are no additional forms to file with the IRS. The form 1040 and Schedule C are sufficient and all that is required.
A multi-owner LLC however, another LLC tax form must be filed with the IRS. This would be the form 1065. This is not a tax form and no taxes are paid with it, but it is an informational form required by the IRS that outlines distributions to each owner.
Different Types of LLC’s
Rather than being classified as a separate taxing entity, the IRS treats the LLC as a pass-through entity and taxation is based on the number of members of the LLC as follows:
- Single Member LLC – The LLC tax form would be schedule C and the 1040 form, just as a sole proprietor would file
- Multiple Member LLC – Each owner would pay taxes through his or her 1040 form, and would file schedule E along with it according to the percentage owned by the individual.
With a single owner LLC, there are no additional forms to file with the IRS. The form 1040 and Schedule C are sufficient and all that is required.
A multi-owner LLC however, another LLC tax form must be filed with the IRS. This would be the form 1065. This is not a tax form and no taxes are paid with it, but it is an informational form required by the IRS that outlines distributions to each owner.
