How Is a US LLC Taxed?

July 20, 2023

It's common knowledge that tax money represents the primary source of revenue in the U.S. Every natural and legal person in and out of the country has the obligation of fulfilling their tax-related responsibilities. When we talk about the taxes of a legal person, we refer to those with a personal/commercial signature or, in other words, those who have listed a Limited Liability Company (LLC). LLCs represent the most flexible and popular structure from a commercial standpoint, and tax filing involves a series of different procedures, ranging from the company's creation to the multiple types of management and the ways they stand out from one another. Any investor or LLC owner must know all of this to fulfill their tax obligations.


Today, our certified tax preparers will tell you everything you need to know about filing your taxes as an LLC, according to the rules set by the Internal Revenue Service (IRS).

How Do LLCs File Their Taxes in the U.S.?

As explained in the opening paragraph, LLCs have different structures and specific tax-filing procedures depending on the type of management that was chosen during the company's creation. For instance, the most common LLCs are registered under the management of a single owner or member. The IRS defines this company as a disregarded entity, meaning that the LLC member has to report the company's earnings and losses on their personal tax return, specifically inside form 104. As the owner of an LLC, this person also needs to enclose Schedule C, listing the LLC's income and losses.


To better describe this point, if you own an LLC, you need to file your personal taxes via Form 1040 and attach Schedule C and SE to report the taxes corresponding to the LLC. You need to file Schedule SE if your income sits below $400. Meanwhile, Schedule C must show the nature of your business and additional data like the LLC's Business Registration Code, the name and address under which the company was registered, the method used to record its accounting operations, its Employer Identification Number (EIN) if the company has employees, and the schedule/hours allotted to its commercial activity.


If the LLC was registered under a structure of multiple members, the IRS classifies the company as a partnership for federal income tax purposes. The company's taxes and the taxes corresponding to its member would be filed under the LLC's commercial name. In this case, you need to file form 1065 listing the LLC's standard information, income, and losses. You also need to attach the member's tax returns in Form 1040 while the member's links to the LLC will be displayed in Schedule E.


Whatever the case, you can use the expertise of a tax consultant to guide you through the process of filing all forms and schedules, depending on the commercial structure of your LLC. This way, you can avoid errors or omissions, and the penalties of filing inaccurate data. A professional tax preparer can also help you plan your taxes so you can have all your files and accounting books in order when it's time to file the taxes for your LLC.

Our Tax Preparers Will Help You File Your LLC Taxes

United Tax & Accounting Group offers the most thorough tax preparation service to help your LLC during the tax season, ensuring that all the information is in order even if you are not fluent in the English language. We also count on a reliable at-home tax preparation service to meet the demands of all Florida residents. Our specialists use the latest technology to assist you with your tax planning and our successful trajectory proves that we have what it takes to help your LLC when it comes to accounting operations and tax preparation services.


With United Tax & Accounting Group, all kinds of taxpayers can secure the most dedicated assistance, including companies operating inside the country and undocumented immigrants wishing to file their taxes as per the country's tax laws.

File your LLC taxes with the help of our tax preparers! You can call (786) 431-5576 or fill out our website's contact form. You can also use our live chat to ask any question, and our specialists will gladly give you all the information you need. United Tax & Accounting Group has all the services you need and the best accounting professionals in South Florida.