What Tax Form Does a Multi-Member LLC Use?
A multi-member LLC’s federal income tax return depends on whether it has made an election to be taxed as a corporation.
Default rule (no corporate election)
A domestic multi-member LLC is generally classified as a partnership for federal income tax purposes. In that case, the LLC files:
- Form 1065, U.S. Return of Partnership Income
- Schedule K-1 (Form 1065) for each member (to report each member’s share of income, deductions, credits, etc.)
If the LLC elects to be taxed as a corporation
If the multi-member LLC files an entity classification election to be treated as a corporation, it generally files:
- Form 1120 (C corporation), or
- Form 1120-S if it is eligible and makes a valid S corporation election on Form 2553
State law note
State income/franchise tax filing rules for multi-member LLCs are administered by the state revenue department/tax agency and may differ from federal classification rules. The controlling authority is the applicable state tax agency (and, for annual entity filings/fees, often the state business filing office). If you need assistance with franchise tax filing, get in touch with the tax team at Monily.
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