Llc tax file

There are special rules for foreign LLCs. Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form and affirmatively elects to be treated as a corporation.

For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity. An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form , Entity Classification Election PDF , to elect how it will be classified for federal tax purposes.

An LLC may be eligible for late election relief in certain circumstances. Each owner reports their pro-rata share of corporate income, credits and deductions on Schedule K-1 Form S. For additional information on the kinds of tax returns to file, how to handle employment taxes and possible pitfalls, refer to Publication , Tax Issues for Limited Liability Companies.

More In File. Classification The Entity Classification rules classify certain business entities as Corporations: A business entity formed under a Federal or State statute or under a statute of a federally recognized Indian tribe if the statute describes or refers to the entity as incorporated or as a corporation, body corporate or body politic.

An Association under Regulations section A business entity formed under a Federal or State statute if the statute describes or refers to the entity as a joint stock association. A state-chartered business entity conducting banking activities if any of its deposits are insured by the FDIC. A business entity wholly owned by a state or political subdivision thereof, or a business entity wholly owned by a foreign government or other entity described in Regulations section 1.

A business entity taxable as a corporation under a provision of the code other than section a 3. Each owner must be given a Schedule K-1, detailing their share of profit and loss, which they report on their own personal income tax. Check your state laws to determine what, if anything, your LLC needs to file for state income taxes. State filings usually mirror the federal filings, meaning partnerships file as partnerships with the state, corporations as corporations, and so on.

However, as this is not true in all states, be sure to research your state's particular requirements. You also need to determine what you need to file for state employment taxes and sales taxes. When forming your LLC, you can choose to work with an online services provider to help with the process. Following the right procedure and filing the correct forms can ensure that your LLC meets its tax obligations.

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By Brette Sember, J. Filing Taxes as a Sole Proprietorship If your LLC has just one member, you can file as a sole proprietor or elect to file as a corporation. Filing Taxes as a Partnership If your LLC has more than one member, you can be taxed as either a partnership or a corporation. Filing Taxes as a C Corporation If you choose to be taxed as a corporation, make the election using Form