Limited Liability Company (LLC) Definition
A limited liability company (LLC) can be one of the following:
●Sole proprietorship
●A partnership
●A corporation
When an LLC is a sole proprietorship, the owner of the LLC files taxes for the profits of the LLC with their personal taxes using the Internal Revenue Service (IRS) U.S. Individual Income Tax Return (1040) form, schedules C, E, or F.
When an LLC is a partnership, taxes are filed using the IRS U.S. Return of Partnership Income (1065) form, schedules B-1, C, D, K, K-1, K-2, K-3, and M-3. (See
Self-Employment(g))
When an LLC elects to be a corporation, taxes are filed using the IRS U.S. Corporation Income Tax Return (1120) form or IRS U.S. Income Tax Return for an S Corporation (1120-S) form when the corporation is choosing to file as an S Corporation. (See
S Corporation(g))