09/20/2023
LLCs have different structures and specific tax-filing procedures depending on the type of management that was chosen during the company's creation. For instance, the most common LLCs are registered under the management of a single owner or member. The IRS defines this company as a disregarded entity, meaning that the LLC member has to report the company's earnings and losses on their personal tax return, specifically inside form 104. As the owner of an LLC, this person also needs to enclose Schedule C, listing the LLC's income and losses.
To better describe this point, if you own an LLC, you need to file your personal taxes via Form 1040 and attach Schedule C and SE to report the taxes corresponding to the LLC. You need to file Schedule SE if your income sits below $400. Meanwhile, Schedule C must show the nature of your business and additional data like the LLC's Business Registration Code, the name and address under which the company was registered, the method used to record its accounting operations, its Employer Identification Number (EIN) if the company has employees, and the schedule/hours allotted to its commercial activity.
If the LLC was registered under a structure of multiple members, the IRS classifies the company as a partnership for federal income tax purposes. The company's taxes and the taxes corresponding to its member would be filed under the LLC's commercial name. In this case, you need to file form 1065 listing the LLC's standard information, income, and losses. You also need to attach the member's tax returns in Form 1040 while the member's links to the LLC will be displayed in Schedule E.
Whatever the case, you can use the expertise of a tax consultant to guide you through the process of filing all forms and schedules, depending on the commercial structure of your LLC. This way, you can avoid errors or omissions, and the penalties of filing inaccurate data. A professional tax preparer can also help you plan your taxes so you can have all your files and accounting books in order when it's time to file the taxes for your LLC.