Complete Guide to LLCs

Running an LLC means juggling tax responsibilities that shift based on how you've structured your company. You'll calculate what you owe, figure out when payments are due, and choose from several payment methods—none of which the IRS will remind you about. Your tax bill depends on whether you're the sole owner or share the business, your annual revenue, and which state issued your business license.

This guide walks through the actual mechanics: determining your rate, running the numbers, and getting money to the IRS before deadlines hit.

Do LLCs Pay Taxes? Understanding LLC Tax Structure

Here's the quirk: the federal tax code doesn't have a special category for LLCs. The government looks at your ownership setup and drops you into an existing bucket. Own the LLC yourself? You're filing as a sole proprietor. Split ownership with partners? That's partnership taxation. The common thread: the company doesn't cut a check to the IRS for income taxes.

Money flows straight through to whoever owns the business. Your share of profits lands on your personal 1040, whether you pulled that cash out of the business account or left it sitting there. A single owner attaches Schedule C to their individual return, listing all business income and expenses. Multiple owners get a different path—the LLC files Form 1065 as an informational document, then sends each owner a K-1 showing their slice of profits or losses. Those owners transfer their K-1 numbers onto their personal returns.

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