1.1 Taxes for LLCs
LLCs are treated as pass-through entities by default. This means the company's profits and losses are reported on the personal tax returns of its members. However, LLCs can elect to be taxed as a Corporation.
Common sorts include things like:
Type 1040 Program C: For solitary-member LLCs. - Sort 1065: For multi-member LLCs submitting being a partnership.
Variety 1120: If electing corporate taxation.
1.2 Taxes for Corporations
Corporations must file a corporate income tax return using Form 1120. S Firms, nevertheless, use
Important federal tax obligations include things like:
- Corporate money tax.
- Estimated quarterly tax payments.
- Work taxes if the organization has personnel.