LLC Tax Guide
Complete guide to LLC taxation. Learn about pass-through taxation, self-employment taxes, and filing requirements for your business.
Understand Your Taxes
Navigate LLC taxation with confidence
LLC Taxation Basics
LLCs are known for their flexible tax structure. By default, LLCs are taxed as pass-through entities, meaning profits and losses flow through to the owners' personal tax returns.
Pass-Through Taxation
LLC profits and losses are reported on members' personal tax returns, avoiding double taxation.
Single-Member LLC
Taxed as a sole proprietorship using Schedule C on your personal tax return.
Multi-Member LLC
Taxed as a partnership using Form 1065 and Schedule K-1 for each member.
Corporate Election
Can elect to be taxed as an S-Corp or C-Corp for potential tax benefits.
Key Tax Benefits
- No double taxation
- Business deductions
- Flexible tax elections
- Pass-through losses
- Self-employment tax
- Quarterly payments
Tax Filing Requirements
Understanding your tax filing obligations is crucial for LLC compliance.
Single-Member LLC
Federal Tax Filing:
- Schedule C (Form 1040)
- Schedule SE (Self-Employment Tax)
- Form 1040-ES (Estimated Tax)
- No separate business return
State Tax Filing:
- State income tax return
- State estimated tax payments
- Local business taxes
Multi-Member LLC
Federal Tax Filing:
- Form 1065 (Partnership Return)
- Schedule K-1 for each member
- Form 1040-ES (Estimated Tax)
- Separate business return required
State Tax Filing:
- State partnership return
- State K-1 forms
- State estimated tax payments
Self-Employment Tax
LLC owners are subject to self-employment tax on their business income.
Self-Employment Tax Breakdown:
Social Security Tax:
12.4% on first $160,200 (2023)
Medicare Tax:
2.9% on all net earnings
💡 Tax Tip:
You can deduct half of your self-employment tax as a business expense on your personal tax return.
Important Deadlines
- April 15: Personal tax return
- March 15: Partnership return
- Quarterly: Estimated tax payments
- January 31: W-2/1099 filing
LLC Tax Elections
LLCs can elect different tax treatments for potential benefits.
S-Corporation Election
Benefits:
- Potential self-employment tax savings
- Reasonable salary requirement
- Pass-through taxation
- Limited to 100 shareholders
Requirements:
- Form 2553 election
- U.S. shareholders only
- One class of stock
- Reasonable compensation
C-Corporation Election
Benefits:
- No self-employment tax
- Retained earnings
- Fringe benefits
- Investor-friendly
Considerations:
- Double taxation
- Form 8832 election
- Corporate tax rates
- More complex compliance
Default Taxation
Single-Member:
- Sole proprietorship
- Schedule C filing
- Self-employment tax
- Simplest structure
Multi-Member:
- Partnership taxation
- Form 1065 filing
- K-1 distributions
- Pass-through treatment
Tax Tools and Resources
Use our tools and resources to help with your LLC tax planning.
LLC Cost Calculator
Calculate the total cost of forming your LLC, including ongoing tax compliance costs.
Calculate CostsBusiness Structure Quiz
Determine if an LLC is the right structure for your tax situation and business goals.
Take QuizCompliance Guide
Learn about ongoing compliance requirements including tax filings and deadlines.
View GuideExternal Tax Resources
Additional resources to help with your LLC tax planning and filing.
IRS Resources
Tax Software
Professional Services
Need Help with LLC Taxes?
Use our tools and resources to understand your tax obligations and plan for your LLC's financial success.
📋 Important Disclaimer:
This guide provides general information about LLC taxation. Tax laws are complex and change frequently. We strongly recommend consulting with a qualified tax professional or CPA for specific tax advice related to your situation. This information is for educational purposes only and should not be considered tax advice.