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.  

Sources 

• IRS — LLC Filing as a Corporation or Partnership (default partnership classification; election options)  

• IRS — About Form 1065 (partnership return)  

• IRS — Form 1065 (shows K-1 requirement as part of partnership filing)  

• IRS — About Form 8832 (entity classification election to be taxed as a corporation)  

• IRS — About Form 1120 (C corporation return)  

• IRS — About Form 2553 (S corporation election)  

This information provided does not, and is not intended to, constitute legal advice.