Yes, an LLC does file a tax return, but which return depends on how many owners it has and whether the owners have elected a different tax classification. By default, a single-member LLC reports its income on the owner’s personal Form 1040 using Schedule C, and a multi-member LLC files a partnership return on Form 1065 and issues each member a Schedule K-1. Neither default LLC pays federal income tax at the business level; profits and losses pass through to the members.1Internal Revenue Service. LLC Filing as a Corporation or Partnership LLCs that elect corporate treatment file their own corporate return instead.
Single-Member LLC: Schedule C on Your Personal Return
The IRS treats a one-owner LLC as a “disregarded entity” by default. The tax system looks through the LLC and sees only you. There is no separate business return. You report business income and expenses on Schedule C, which attaches to your Form 1040, and the net profit flows through to the rest of your personal return.2Internal Revenue Service. Instructions for Schedule C (Form 1040) (2025)
The trade-off for that simplicity is self-employment tax. No employer is withholding Social Security and Medicare on your behalf, so you owe both halves — a combined 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare.3Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) The Social Security portion applies only up to $184,500 in net earnings for 2026; earnings above that still owe the 2.9% Medicare tax, and earnings over $200,000 ($250,000 if married filing jointly) add a 0.9% Medicare surtax.4Social Security Administration. What Is the Current Maximum Amount of Taxable Earnings for Social Security You can deduct the employer-equivalent half when calculating adjusted gross income.
One point that surprises new owners: a single-member LLC does not automatically need its own Employer Identification Number. If you have no employees and no excise tax liability, you can use your Social Security number for federal tax purposes.5Internal Revenue Service. Single Member Limited Liability Companies Many banks and some states still require an EIN, so most owners obtain one anyway.
Multi-Member LLC: Form 1065 and K-1s
Once an LLC has two or more members, it is classified as a partnership for federal tax purposes by default.6Internal Revenue Service. 2025 Instructions for Form 1065 The partnership doesn’t pay income tax, but it does file an information return, Form 1065, reporting the company’s total income, deductions, and credits. It then issues each member a Schedule K-1 showing that member’s share of profits or losses, and each member reports the K-1 amounts on their personal return.7Internal Revenue Service. About Form 1065, U.S. Return of Partnership Income
How income is divided depends on the operating agreement. Many LLCs split profits according to ownership percentages, but partnership tax rules permit flexible allocations. Members generally owe self-employment tax on their distributive share at the same 15.3% rate.
Guaranteed payments deserve their own note. If one member receives a fixed amount for services regardless of whether the business turns a profit, the partnership deducts that payment on Form 1065, and the receiving member reports it as ordinary income on their K-1.8Internal Revenue Service. Instructions for Form 1065 Guaranteed payments are always subject to self-employment tax.
If You’ve Elected Corporate Treatment
An LLC can choose to be taxed as a corporation instead of using the default treatment. Two elections are available, and each changes the filing entirely.
C-Corporation Election
Filing Form 8832 lets the LLC be taxed as a C-corporation.9Internal Revenue Service. About Form 8832, Entity Classification Election The business then files Form 1120 and pays a flat 21% federal corporate tax on its profits. Distributions to members are taxed again on their personal returns, producing the classic double taxation.
S-Corporation Election
Filing Form 2553 lets the LLC be taxed as an S-corporation, which preserves pass-through treatment.10Internal Revenue Service. About Form 2553, Election by a Small Business Corporation The LLC files Form 1120-S each year and issues K-1s to each member.11Internal Revenue Service. About Form 1120-S, U.S. Income Tax Return for an S Corporation Owner-employees split their income between a reasonable salary (subject to payroll taxes) and distributions (not subject to payroll taxes). Courts have consistently held that a shareholder-employee must pay a reasonable salary before taking distributions, and understating that salary to avoid employment taxes has been rejected repeatedly.12Internal Revenue Service. S Corporation Employees, Shareholders and Corporate Officers
Quarterly Estimated Tax Payments
Filing an annual return is not the only obligation. Because no one is withholding tax from LLC income, owners are expected to pay estimated taxes four times a year. For 2026, the due dates are April 15, June 15, September 15, and January 15, 2027.13IRS.gov. 2026 Form 1040-ES You can skip the January payment if you file your 2026 return and pay the full balance by February 1, 2027.
You must make estimated payments if you expect to owe at least $1,000 in federal tax for the year after withholding and refundable credits. To avoid an underpayment penalty, your payments must cover at least the smaller of 90% of your 2026 tax liability or 100% of what you owed in 2025. If your 2025 adjusted gross income exceeded $150,000 ($75,000 if married filing separately), the second safe harbor jumps to 110% of the prior year’s tax.14Internal Revenue Service. 2026 Form 1040-ES (NR) Instructions
The underpayment penalty works like interest on what you should have paid, calculated at the federal short-term rate plus three percentage points, or 7% as of early 2026.15Internal Revenue Service. Quarterly Interest Rates It accrues daily, so falling behind early in the year costs more than a late fourth-quarter payment.
Filing Deadlines by Classification
When your return is due depends on how the LLC is taxed:
- Partnerships and S-corporations file by March 15 for calendar-year filers. This earlier deadline exists so K-1s reach members in time for their personal returns.
- Single-member LLCs and C-corporations file by April 15 for calendar-year filers.16Internal Revenue Service. Starting or Ending a Business 3
Any deadline falling on a weekend or legal holiday shifts to the next business day.17Internal Revenue Service. When to File
Extensions
Partnerships and S-corporations can get an automatic six-month extension by filing Form 7004 by the original due date, moving the deadline to September 15.18Internal Revenue Service. Instructions for Form 7004 (12/2025) Individual owners file Form 4868 for a six-month personal extension to October 15. An extension gives you more time to file, not more time to pay. If you owe tax, you still need to estimate and pay by the original deadline to avoid interest and penalties.
Penalties for Filing Late
Late-filing penalties for partnership and S-corporation returns are calculated per owner and add up quickly. For returns due in 2026, the penalty is $255 per partner or shareholder for each month or partial month the return is late, up to 12 months.19Internal Revenue Service. Failure to File Penalty A four-member LLC that files Form 1065 three months late owes $3,060, even if the return itself shows no tax due. The same $255 per-person monthly rate applies to late Form 1120-S filings.20Internal Revenue Service. 2025 Instructions for Form 1120-S
For individual returns, which is where single-member LLC income lands, the failure-to-file penalty is 5% of the unpaid tax for each month the return is late, up to a maximum of 25%.19Internal Revenue Service. Failure to File Penalty A separate failure-to-pay penalty runs at the same time. Filing on time even when you can’t pay the full balance always costs less than filing late.
State Filings Are Separate
Federal filing is only part of the picture. Most states impose their own income tax on LLC earnings, and many charge an annual franchise tax or require a periodic report to the secretary of state whether or not the business earned revenue. These obligations exist independently of the federal return, and the deadlines rarely line up. Missing a state annual report can cost the LLC its good standing, which may limit your ability to enforce contracts or access the courts. Check with your state’s secretary of state and department of revenue for the specific forms, fees, and dates that apply where the LLC is registered.