How to File Business Taxes for an LLC (2026 Tax Year Guide)

Published by Jon Morgan | Co-Founder & Chief Editor

Last updated: June 10, 2026

FACT CHECKED by Lou Viveros, Growth & Transition Advisor

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Filing LLC taxes isn't a one-size-fits-all process. Your structure determines which IRS forms you file and whether you owe self-employment tax.

Over 6 years of consulting, I've helped more than 40 LLC owners work through tax classification decisions. In 3 of those cases, a missed S corp election deadline meant an unexpected 15.3% self-employment tax bill that could have been avoided entirely.

This guide covers every major LLC tax type, including single-member, multi-member, C corp and S corp. You'll also see the exact forms and deadlines for the 2025 tax year filed in 2026. Aran Quinn, a CPA, Esq., LL.M certified public accountant and tax attorney at Quinn Global Tax Law PC, reviewed the guide for accuracy.

Quick Summary

How LLC taxes work — quick overview

By default, the IRS doesn't tax an LLC as its own entity. Instead, the IRS assigns one of three classifications based on how many members you have or which election you file.

• One member. Disregarded entity, so income flows to your personal return on Schedule C.
• Two or more members. Partnership, so the LLC files Form 1065 and issues each member a Schedule K-1.
• Elected corporate treatment. The LLC files Form 8832 for C corp or Form 2553 for S corp and submits its own corporate return.

Three forms drive nearly every decision below. They are Form 8832 for default-classification changes, Form 2553 for the S-corp election and Form 1040 Schedule SE for self-employment tax. Memorize those, and most of the filing logic follows.

State-by-state LLC Tax Requirements

The table below summarizes how each state taxes LLCs. Click any state for a full breakdown of forms, deadlines and franchise fees specific to that state.

State tax data changes frequently. Confirm current rates with your state department of revenue before filing.

LLC tax filing deadlines for 2025 tax year

Filing taxes by LLC type

Start by identifying your LLC's tax classification. That's what drives everything else. The default classification is set by member count. Corporate treatment requires an explicit election with Form 8832 or Form 2553.

If you're a first-time filer, go through a checklist before you do anything. Pay extra attention if you need Forming LLC Without SSN. Keep in mind that state tax requirements vary depending on where your business is registered.

From there, determine What Tax Form Does Your LLC File. If you're unsure which applies, a tax professional can help you sort it out quickly.

Let's get into more detail about how LLC owners pay taxes, and first let’s learn What are the Different Types of LLC.

Single-member LLC (disregarded entity)

If your LLC had little or no revenue this year, start with our guide on How to File Taxes for an LLC With No Income. The rules are different from a profitable single-member LLC.

As a single-member LLC, the IRS taxes you like a sole proprietorship. All income flows directly to you as the owner, and you report any profit, expense or loss on your personal tax return.

In practice, that means filing Schedule C (Form 1040) by April 15, 2026 for the 2025 tax year. It's one of the simpler filings you'll deal with, but don't confuse "simple" with "optional."

For tax purposes, a single-member LLC is also called a disregarded entity. That's IRS language for "we're treating this like you and the business are the same thing."

You'll also file Schedule SE (Form 1040) to calculate self-employment tax at 15.3% on net earnings of $400 or more. Schedule SE is filed alongside your Schedule C with your personal return.

If your state has an income tax, you'll also file a state personal income tax return reporting the LLC income. Rates and deadlines vary by state, so see the state-by-state table below.

If you’re considering How to Avoid & Reduce Self Employment Tax, think about electing corporate taxation for the disregarded entity.

You will also have to complete an Internal Revenue Service Schedule C as a single-member LLC owner, which is the same form sole proprietors use when filing their taxes.

If you want to minimize your self-employment tax burden, opt for electing corporate taxation for the disregarded entity.

Multi-member LLC (partnership)

LLCs with two or more members are taxed like partnerships by default. Income flows directly to each member, so there's no entity-level tax.

With multiple-member LLCs, here's how the filing process actually works.

• The LLC reports all income and expenses on IRS Form 1065 (U.S. Return of Partnership Income).
• The LLC then issues a Schedule K-1 to each member, showing that member's share of partnership income, losses, deductions and credits. Before you calculate each K-1, learn How to Split Ownership in an LLC.
• Each member uses the information from their K-1 to report their share of profit or loss on Schedule E (Form 1040) of their personal return.

For the 2025 tax year, Form 1065 is due March 16, 2026 (March 15 falls on a Sunday). Each member's personal Form 1040, including Schedule E, is due April 15, 2026 [1].

Schedule K-1 is issued BY the LLC TO each member. It's not a return the member files themselves. The member uses the K-1 data when preparing their own Form 1040 and Schedule E.

LLC taxed as S corporation

An LLC Electing To Be Taxed As an S Corp must file IRS Form 2553 (Election by a Small Business Corporation) [2]. Electing S-corp status keeps the LLC a pass-through entity while letting owner-members split compensation between salary and distributions.

The LLC then files Form 1120-S with the IRS to report business income and losses [3], and issues a Schedule K-1 to each member. Members report their share on Schedule E of their personal Form 1040.

Deadline. Form 1120-S is due March 16, 2026 because March 15 is a Sunday. Members' personal Form 1040 is due April 15, 2026.

Key compliance rules for S-corp LLCs.

• Reasonable salary requirement. The IRS requires owner-employees of S corps to pay themselves a "reasonable salary" subject to payroll taxes before taking distributions. Paying yourself only distributions to dodge employment taxes is a primary audit trigger. What counts as "reasonable" depends on industry, role and revenue. When in doubt, benchmark against comparable W-2 roles.
• 75-day election window. Form 2553 must be filed within 75 days of the start of the tax year you want it to apply (or within 75 days of formation for new entities). Miss it, and your election doesn't take effect until the following year.
• Eligibility restrictions. S corps are limited to 100 shareholders, must have only U.S. resident shareholders (no foreign members) and can issue only one class of stock. An LLC with any foreign member can't elect S-corp status.

LLC taxed as C corporation

An LLC can elect to be taxed as a C corporation by filing IRS Form 8832 (Entity Classification Election) [4]. Once classified as a C corp, the LLC files corporate income taxes separately from its members' personal returns.

The LLC files Form 1120 (U.S. Corporation Income Tax Return). For calendar-year corporations, Form 1120 is due April 15, 2026 for the 2025 tax year.

The catch is double taxation. Electing C-corp treatment creates two layers of tax.

1. The C corp pays corporate income tax (currently 21% federal flat rate) on its profits.
2. When the corporation distributes those after-tax profits to members as dividends, the members pay personal income tax on the dividends too.

This is the single most important fact to weigh before electing C-corp status. It can still make sense in a few cases. For example, you might plan to retain earnings inside the business, qualify for the Section 1202 small-business stock exclusion or want corporate-level fringe benefits. Most small LLCs will still pay more total tax under C-corp treatment than under the default pass-through.

I'd recommend talking through the S corp vs. C corp question with a tax professional before you file. The right answer depends on your income level, how you plan to pay yourself and your long-term plans for the business.

Other LLC taxes you need to know

Beyond income tax, most LLCs owe at least one more form of tax. The list covers self-employment tax, estimated quarterly taxes, state income tax, franchise tax or sales tax.

Self-employment tax (15.3%)

LLC members don't get a pass on self-employment tax. Because a default-classified LLC isn't taxed at the entity level, members pay 15.3% on their share of profits. That breaks down to 12.4% for Social Security on earnings up to $176,100 in 2025 and 2.9% for Medicare, which has no earnings cap [5].

There's an additional 0.9% Medicare surtax on self-employment income above $200,000 (single filers) or $250,000 (married filing jointly). It's not part of the standard 15.3% rate but applies on top of it for high earners.

As a pass-through entity, you report your share of profits on your personal return and pay the corresponding taxes there.

This catches a lot of people off guard. I've seen it trip up LLC members who earn music business income from performances, streaming or royalties and didn't realize their entire net share was subject to SE tax.

Estimated Quarterly Tax Payments

If you expect to owe more than $1,000 in federal taxes on your LLC income, you must make quarterly estimated tax payments. Use Form 1040-ES (Estimated Tax for Individuals) to calculate and submit them.

The threshold is on federal tax owed, not gross profit, so a high-deduction LLC with low net income may not need quarterly payments at all.

Here are the 2026 quarterly deadlines for 2026 tax-year income.

Those payments get credited against your annual tax bill, so you're not paying twice. You're just paying earlier.

State income taxes

State income tax is the biggest variable in LLC tax planning. Nine states levy no broad personal income tax at all. California sits at the other extreme with a top rate of 13.3%. See the state-by-state table below for specifics on your state.

Franchise taxes

Many states charge a separate franchise tax (sometimes called an "annual report fee," "LLC tax" or "business privilege tax") just for the privilege of operating as an LLC in that state, separate from income tax. Here are a few examples.

• California charges an $800 minimum annual franchise tax for every LLC, regardless of income.
• Delaware levies a $300 flat annual franchise tax, owed even if your LLC doesn't operate there.
• Texas only applies its franchise (margin) tax if annual revenue exceeds the no-tax-due threshold of $2.47 million for 2024 reports.
• New York charges an annual LLC filing fee that ranges from $25 to $4,500 based on gross income.
• Tennessee charges a franchise and excise tax of $100 minimum, plus 6.5% on apportioned net earnings.

Franchise taxes are often forgotten because they're invoiced separately from federal returns. Missing them is one of the most common ways LLCs fall out of good standing with their state.

Sales tax

If your LLC sells physical products, certain digital goods or some types of services, you'll likely need to collect and remit sales tax to every state where you have economic nexus.

Post-Wayfair (2018), most states impose nexus once you cross either a sales-dollar threshold (commonly $100,000) or transaction-count threshold (commonly 200 transactions), even with no physical presence.

Sales tax is administered by the state department of revenue, not the IRS. Registration, filing frequency and rates vary by state and in some cases by county or city.

How to change your LLC tax classification

To change your tax classification, file IRS Form 8832 (Entity Classification Election) [4].

By default, the IRS classifies your LLC based on how it's organized and taxes it accordingly. But if you've outgrown that default, or you elected the wrong structure early on, Form 8832 lets you make the switch.

An LLC already classified as a corporation can use this to choose between C corp or S corp treatment.

Once you change your tax classification, you generally cannot change it again for 60 months (5 years). Consider this carefully before electing. A reactive classification change after a single bad tax year can lock you into the wrong structure through several growth stages.

To elect S corp status for the current tax year, file Form 2553 within 75 days of your tax year starting. For calendar-year LLCs, that's the March 16 window. New LLCs follow the same 75-day rule from their formation date, which can be any date in the year.

Miss the window and your election doesn't apply until the following tax year. I've had clients find this out in April when there was nothing left to do about it.

If you do miss it, the IRS allows late S-corp election relief under Revenue Procedure 2013-30 [6], but you must demonstrate reasonable cause for the delay. Don't count on it as a backup plan. Proving "reasonable cause" is harder than most people expect.

FAQs

References:

1. https://turbotax.intuit.com/tax-tips/small-business-taxes/business-tax-deadline-guide-for-2024/c6DlyOhp5
2. https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
3. https://www.irs.gov/forms-pubs/about-form-8832
4. https://www.irs.gov/pub/irs-pdf/i1065.pdf
5. https://www.irs.gov/instructions/i1120s
6. https://www.irs.gov/pub/irs-pdf/f2553.pdf
7. https://www.irs.gov/pub/irs-drop/rp-13-30.pdf