What federal income tax forms do I file if I own a LLC?

jscalona
by jscalona

 

Filing taxes for your LLC business is a multi-step process. It’s much harder than filing your own personal taxes. A lot depends on certain information regarding your business.

For Businesses with One Member

If you and only you own your business, you just need one extra set of 2010 tax forms. You still fill out your individual taxes using the 1040 series of tax forms. However, you also need Schedule C. These 2010 tax forms are for reporting profits and losses for a business. Simply figure out the calculations line by line on the Schedule C and enter them on the 1040. It will help you figure your total taxes, business and personal.

However, some businesses can’t use these particular 2010 tax forms. They have been registered as a corporation. If this is so, the 1040 set of tax forms will still be necessary, but will serve for your personal taxes only. The 2010 tax forms you need for your business are the 1120 set of tax forms.

Some businesses are classified as S-Corporations, or small businesses. Generally, they have less than 100 stockholders. These people pay the federal taxes for the business through their stocks. They and the business need the 2010 set of tax forms numbered 2553.

Businesses with Multiple Members

For businesses with more than one owner, or partnerships, you need tax form 1065. If you elected to become a corporation, however, you need the 1120 set of tax forms. Businesses which have more than one member and aren’t corporations are partnerships.

Each member of the business needs to file for their own share of the profit and loss from the business. However, they must also claim each partner’s share as well. Everything must match up with each partner’s claim or delays – or even audits – may result.