941 & Business Taxes

Does a LLC file a Tax Return?

If you have a Limited Liability Corporation (LLC), do you have to file an annual tax return? Well, yes. The kind of return you file depends on how many members in the LLC...

More than one member in LLC - Partnership - If there are two or more members of the LLC, you will file a partnership return (or form 1065). Each partner will get a K-1 reflecting their loss or gain in the partnership and report that on their 1040.

Just yourself in LLC - Schedule C 1040 - If there's just you and you are the only member of the LLC, you will simply file the LLC's Revenue and Expenses on your 1040 Schedule C.

You and your spouse are the two members of the LLC - Partnership or Schedule C. If you and your spouse are the two members of an LLC, you will report your income on a Schedule C if you live in a Community Property State like California, Texas, or Washington State. If you live in a commonwealth state (most of the Eastern Seaboard and Midwest, among others), you will report your income on a Partnership return 1065.

Limited Liability Corporations are pretty easy to set up - that's why they exist as an alternative to more complex standard Corporations. If you want the tax benefits of a S corporation like reduced Social Security/Medicare taxes, your LLC can make the S corp election (but don't wait too long to do it...you need to do it no later than two months and fifteen days after forming).

Is 2024 the year to solve your tax issue? WATAX is ready to assist you now. Please call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you promptly.

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