How To File Business Taxes For LLC Owners (2026)

How the IRS Classifies Your LLC

How the Internal Revenue Service (IRS) classifies your LLC depends on how many members you have.

Single-Member LLCs

If you’re the only owner of your LLC, the IRS will treat it as a “disregarded entity.” Because earnings pass through your LLC to get to you, the agency will tax the earnings as your personal income.

Multi-Member LLCs

If your LLC has at least two owners (or members), the IRS will treat it like a partnership. Your LLC must file Form 1065 to report your income, losses, and other financial information. The LLC won’t pay taxes at the entity level, but each partner will pay income tax on their share of earnings.

Electing Corporate Tax Status

Tax flexibility is one of the main benefits of an LLC. If you’d prefer your LLC to be taxed as either a C-corporation or an S-corporation, you can make that request by filing Form 8832 with the IRS.

Getting Your EIN and Books Ready

If you don’t already have an employer identification number (EIN) for your LLC, get one right away. This nine-digit number works like a Social Security number for businesses, and you’ll need it to file your LLC taxes. You can get an EIN for free in minutes on the IRS website.

You should also confirm that your LLC’s books are complete, organized, and up to date. Cleaning up your books now can save you a significant amount of stress.

Documents to Gather Before Filing

Before you file, take the time to round up all relevant financial and expense records. Key documents include:

• Total income records
• Receipts and expense records
• Business bank account and credit card statements
• Payroll documents (if you have employees)

You should also have a copy of last year’s tax return handy.

Which Tax Forms to File

The tax forms you’ll need to file depend on your LLC’s ownership structure and whether you’ve elected corporate tax status:

• Single-Member LLCs: Form 1040 (Schedule C, E, or F)
• Multi-Member LLCs: Form 1065 (with attached Schedule K-1 for each owner)
• LLC Taxed as a C-Corp: Form 1120
• LLC Taxed as an S-Corp: Form 1120-S (with attached Schedule K-1 for each shareholder)

If your LLC is currently treated as a disregarded entity or partnership and you want it to be taxed as a corporation instead, you can file Form 8832 with the IRS to make the change.

Paying Quarterly Estimated Taxes

Because taxes aren’t automatically withheld from your LLC’s earnings, you’ll need to pay estimated taxes. The IRS sets four quarterly deadlines to submit your estimated tax payments. If you miss your estimated tax deadlines, you might owe underpayment penalties.

If you aren’t sure how much to set aside for taxes, the IRS offers tools and calculators to help you reach a close estimate.

Employment and State Taxes

If your LLC has employees, is located in a state with state-level income tax, or both, your LLC taxes may be more complicated.

You’ll need to withhold Social Security and Medicare taxes (as well as federal income tax) from employees’ paychecks throughout the year. If your state has a state-level income tax, you should withhold that, too.

In addition, some states charge a “franchise tax” to LLCs. If your state does, you’ll probably need to include it when you submit your annual report.

Deductions and Credits for LLCs

Taking advantage of available deductions can make a huge difference in your tax bill. Here are a few common deductions:

• Payroll and Benefits: These should be deducted from your LLC’s income
• Startup Costs: If it’s your first year in business, you may be able to deduct up to $5,000 in startup costs
• Home Office: If you use part of your home for business, you can deduct a proportional share of rent and utilities

The biggest deduction for most LLC owners is the qualified business income (QBI) deduction. If your LLC is a pass-through entity (not taxed as a corporation), you may deduct up to 20% of net business income.

Filing Deadlines and Extensions

Filing deadlines differ based on how an LLC is classified. Typically, they’re as follows:

• Multi-Member LLCs and LLCs Taxed as S-Corps: March 15
• Single-Member LLCs and LLCs Taxed as C-Corps: April 15

If you need more time to file, you can request a six-month extension from the IRS. The extension just gives you more time to file; payments are still due by the standard deadline.

Common Filing Mistakes to Avoid

It’s important to watch out for the following common tax-filing mistakes:

• Waiting until the last minute to file
• Not maintaining clear and accurate records throughout the year
• Filing on the wrong deadline
• Misclassifying employees as contractors
• Not paying estimated taxes during the year
• Forgetting about state and local taxes

Business taxes can be extremely complex, especially if you’re trying to navigate them for the first time. It’s not a bad idea to consult a tax advisor to help you avoid potentially costly mistakes.