LLC on an 1120 or Schedule E?

[nisa004]

My husband created a sole owner LLC, then that new entity purchased a house to use as rental property. Does the LLC file its' own tax form, like an 1120? Or is everything done on his 1040? I used to have an S-Corp, so am used to the "business" having its own tax return. Not sure how the LLC works.

[M-MTax · Accepted solution]

Multi-member LLCs file a Form 1065 while single-member LLCs file on their individual income tax returns (1040) unless they make an election to be treated as corporations for federal income tax purposes.

Therefore, unless your husband made an election, he would file income and expenses from his LLC on the appropriate schedule on his (or your joint) 1040.

[M-MTax]

In short, the single-member LLC is disregarded for federal income tax purposes.