LLC tax returns

By default, a multi-member LLC is treated as a partnership for tax purposes unless it elects to be treated differently. Here's a breakdown of the requirements:

Multi-Member LLC (default status): A multi-member LLC is treated as a partnership for federal tax purposes. This means the LLC itself does not pay income tax. Instead, it files Form 1065 (U.S. Return of Partnership Income) to report its income, deductions, and other financial information. The LLC then issues Schedule K-1 to each of its members, showing their share of the LLC's income, deductions, credits, and other items. Each member then reports their share of these items on their own individual tax return.

Single-Member LLC: A single-member LLC is disregarded for federal income tax purposes. This means the LLC's income and expenses are reported directly on the owner's tax return (usually on Schedule C attached to the individual's Form 1040). It does not file Form 1065 or issue K-1s, as there is only one owner

LLC Electing S-Corporation Status: An LLC can also elect to be treated as an S-Corporation for tax purposes by filing Form 2553 with the IRS. This election allows the LLC to pass income, deductions, and credits to the owners (shareholders) similar to a partnership, but it may allow the owners to avoid self-employment taxes on a portion of the income. If an LLC elects S-Corp status, it must file Form 1120S (U.S. Income Tax Return for an S Corporation) and issue Schedule K-1 (Form 1120S) to its shareholders.

In summary: 

 Multi-member LLC (default): Files Form 1065 and issues K-1s. 

 Single-member LLC: Reports on the owner's personal tax return (no Form 1065 or K-1). 

 LLC electing S-Corp status: Files Form 1120S and issues K-1s to shareholders.