LLC Income Statements

If you own an LLC in the United States, you should be aware of the deadlines for filing your company’s tax returns. Your LLC is a business identity that offers many tax advantages, but you must meet the necessary tax obligations to be in good standing with the IRS. Here we will give you all the information you need to file your LLC’s tax returns on time and without problems.

One Member LLCs

If you are the sole owner of a Limited Liability Company (LLC), it is considered a “disregarded” entity for tax purposes. This means that business income and expenses must be reported directly on your personal tax return.

The tax filing deadline for a single member LLC is the same as the personal tax filing deadline, that is, before April 15 of each year. If April 15 falls on a holiday or weekend, you will need to file your taxes the next business day.

If you need more time, you can request an extension, which will give you until October 15 to file your single-member LLC’s tax return. However, keep in mind that this extension does not apply to taxes owed, which must be paid before April 15.

When the owner is a foreigner, forms 5472 and 1120 apply. Failure to submit this income statement (whether you have had movements or not), entails a fine of $25,000 or more by the IRS. That is why it is important to keep this in mind and make your income statements on time.

Multiple Member LLCs

If your LLC has multiple members, it is considered a separate entity for tax purposes, which involves filing your tax return using Form 1065.

The tax filing deadline for a multi-member LLC is March 15 of each year. If this date falls on a holiday or weekend, you will need to file the taxes the next business day.

If you need more time, you can request an extension to file your tax return before September 15. However, this extension does not apply to taxes owed, which must be paid before March 15.

According to the IRS, “The penalty is $220 for each month or part of a month (for a maximum of 12 months) that the violation continues, multiplied by the total number of persons who were partners in the partnership during any part of the year. tax of the company for which the declaration must be presented”.

The late filing penalty only applies if the partnership is required to file the return and one of the following occurs:

• You do not file the return by the due date (or extended due date if a timely extension was requested).
• File a return without including all required information

Why is it important to file tax returns on time?

The IRS takes income tax returns seriously and penalizes you if you don’t file them, or file them late. While LLCs have incredible tax benefits when you don’t live in the United States, it’s super important that you file these returns every year, starting the year after your LLC’s creation date.

As we know this can be a somewhat overwhelming process, we offer the tax return filing service to all of our clients. We help you not only to keep your LLC active with the State, but to always be up to date with the IRS and thus avoid fines.