Which tax return does your business file?
LLC, partnership, S corporation or C corporation: the form, the due date, and what changes for the owners.
How your business is taxed decides which federal return it files and when it is due. Here is the short version for calendar-year companies.
Single-member LLC
By default the IRS disregards a single-member LLC for income tax. A US owner reports its profit on Schedule C of Form 1040, due April 15. A foreign owner files Form 5472 with a pro forma Form 1120.
Partnership or multi-member LLC
Files Form 1065, due March 15. Each owner receives a Schedule K-1 and reports their share on their own return.
S corporation
Files Form 1120-S, also due March 15. Owners who work in the business must pay themselves a reasonable salary through payroll, and the remaining profit passes to them on a K-1. Nonresident aliens cannot own S corporation shares.
C corporation
Files Form 1120, due April 15. The corporation pays federal income tax on its profit at a flat 21% rate.
Extensions
Form 7004 extends the filing deadline for business returns by six months. Like an individual extension, it does not extend the time to pay.
Thinking about electing S corporation status for your LLC? The election, Form 2553, has its own deadline. Talk to us before the year starts.