What kind of tax return does an LLC file?
Generally, a LLC files the same federal tax form as a partnership: form 1065. If you are a single-owner LLC, the IRS treats your LLC as a sole proprietorship. You report profits on a Schedule C as part of your individual 1040 tax return. You also pay self-employment taxes on LLC net income just as you would with any self-employment business. Individual members may also be liable for self-employment Social Security taxes filed on Schedule SE of form 1040. A LLC may also be required to make estimated income tax payments. In most cases, if you expect to owe $1000 in federal taxes for the year after subtracting any withholding and tax credits, you must file a form 1040-ES for each quarter with the IRS. Lastly, the IRS has determined that an LLC meeting certain requirements may be taxed as a “pass through” entity like a partnership or S corporation. This means that the LLC’s profits and losses flow through to the LLC members. Many of the restrictions placed on S corporations, such as limits
