The end of the calendar tax year often has LLC members asking, "When are LLC taxes due?" Read on to learn what LLC taxes include and when they are due.
LLC taxes are taxes that owners (called members) of limited liability companies (LLC) must pay. The taxes include income tax, which often gets paid as estimated tax. This is because earnings of LLC members aren't subject to employee tax withholding. LLC taxes often also include self-employment (Social Security and Medicare) taxes. The general rule is that LLC members who play an active role in an LLC must pay self-employment tax. But certain members of multi-member LLCs who do not play an active role may be exempt from this specific tax.
How an LLC pays taxes depends on the number of members and how it asks the IRS to treat it for income tax purposes. The IRS treats LLCs as disregarded entities, partnerships or corporations for these purposes. The IRS usually classifies single-member LLCs as disregarded entities. The LLC itself doesn't pay taxes. But members of an LLC taxed this way have to pay taxes as a sole proprietor does. LLC members should report LLC income using Schedule C and file it with Form 1040. The IRS tends to classify domestic LLCs with at least two people as partnerships. Again, the LLC itself doesn't pay taxes. But members of these LLCs pay taxes as partners do. These LLCs must report partnership income on IRS Form 1065. They should also provide a copy of Schedule K-1 with the individual share of income to each LLC member. Members should also report the earnings data from 1065 on Schedule E and file it with Form 1040. An LLC can file Form 8832 to elect for the IRS to treat it as a corporation. The LLC pays taxes as a corporation does. The LLC should then report the corporate income on Form 1120. S corporations should report corporate income on Form 1120S. S corporation members should report their income share on Schedule-K1 of Form 1120S.
The answer to the question "When are LLC taxes due?" comes down to whether LLC members owe estimated taxes and how the IRS treats your LLC. LLC members who must make estimated tax payments on their share of income should pay them four times a year. The due dates for 2018 are on April 17th, June 15th, September 17th and January 15th, 2019 on a calendar tax year. If you run on a fiscal year, pay by the 15th of the 4th, 6th and 9th month of the tax year. Make the last payment on the 15th of the first month after the tax year. The exception is corporations. Their last payment is due on December 17, 2018, for a calendar tax year or the 15th of the 12th month of the fiscal tax year.
Plus, members of LLCs taxed as disregarded entities should file Form 1040 by April 15, 2019. LLCs taxed as partnerships should file Form 1065 by March 15, 2019, on a calendar tax year. Or, file it by the 15th of the third month after the tax year ends if you file taxes on a fiscal year basis. LLC members should also keep in mind the date to file Form 1040 with Schedule E attached. LLCs taxed as corporations should file Form 1120 by April 15, 2019, on a calendar tax year. This would be equal to the 15th of the fourth month after the end of the fiscal tax year. But there is an exception to this due date for a corporation that runs on a fiscal tax year that ends June 30th. Such a corporation has to file by the 15th of the third month after the tax year ends. LLCs taxed as S corporations should file Form 1120S by March 15, 2019, on a calendar tax year. This would be equal to the 15th of the third month after the tax year ends.