Multi Member LLC Taxes

[arii12]

If i file my multi member llc, does it file federal and state together or separate?

[rjs · Accepted solution]

Federal and state tax returns are always separate.

A multi-member LLC is treated as a partnership for tax purposes. The LLC has to file a Form 1065 partnership tax return. The partnership tax return includes a Schedule K-1 for each partner. Each partner has to enter the Schedule K-1 in his or her personal Form 1040 tax return.

You cannot use a personal version of TurboTax to file the Form 1065 partnership tax return. You have to use TurboTax Business, which is available only as desktop software that you install on your Windows computer.

The deadline for filing a partnership tax return is March 15, not April 15. The penalties for filing late are steep and increase each month. File as soon as you can.

If you and your spouse are the only members of the LLC, and you live in a community property state, you may have the option to disregard the LLC and report it on your personal tax return.