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By default the LLC has option to file the following Income Tax Form
OR FORM 1120 OR 1120 IF THE LLC HAS OPTED TO BE TAXED AS CORPORATION )LLC CLASSIFIED AS CORPORATION)
How a limited liability company pays income tax depends on whether the LLC has one member or more than one member:
a single member LLC is taxed as a sole proprietorship. That is, the information about the LLC`s income and expenses, and its net income, is prepared using Schedule C. The net income from the Schedule C is brought over to Line 12 of the owner`s personal tax return (Form 1040 or other).
An LLC which has more than one member is pays income tax as a partnership. The partnership itself does not pay taxes directly to the IRS; the individual partners pay tax based on their share of ownership in the partnership. The partnership files an information return with the IRS on Form 1065. Then a Schedule K-1 is prepared for each partner, showing the share of the profit/loss of the partnership .The K-1 is filed with the partner`s individual return and the gain/loss is show on the partner`s Form 1040.
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