How to Do Taxes for My LLC
- 1). Determine your filing status. If you are a single-member LLC, you can file with the IRS as a corporation or sole proprietor but not as a partnership. If you are a multiple-member LLC, you can file as a partnership or a corporation. You may want to consult with a tax adviser to determine what filing status offers you the most tax advantages.
- 2). Follow IRS regulations regarding how to correctly file LLC forms. If you are filing an individual LLC return, you should report LLC income and expenses directly on Form 1040 through the use of the appropriate schedule or schedules: C, "Profit or Loss from Business"; E, "Supplemental Income and Loss"; and F, "Profit or Loss from Farming." If you are filing your LLC taxes as a corporation, you should report LLC income and expenses on the corporate return, which is usually Form 1120 or Form 1120S, "U.S. Corporation Income Tax Return." If your LLC has more than one member, you must file a partnership return using Form 1065, "U.S. Return of Partnership Income."
- 3). Verify whether you have to pay self-employment taxes. Most members filing schedules C or E have to pay self-employment taxes. Members filing partnership returns generally have to pay self-employment taxes on their share of partnership earnings, although members classified as limited partners pay self-employment tax only if the LLC pays them for services.
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