Guidance for Special Types of Businesses
Special Rules for Certain Business Structures
Special Provisions for a Limited Liability Company (LLC)
An LLC is an entity formed under state law by filing articles of organization as an LLC.
None of the members of an LLC are personally liable for its debts.
An LLC can be classified as either a partnership
or a corporation for federal income tax purposes. See
Corporation, for the rules you
must use to determine whether an LLC is treated as a corporation.
If an LLC is not treated as a corporation and has 2 or more members,
it is treated as a partnership. Depending on its classification,
an LLC would file either Form
1065 or Form
1120. However, if an LLC has a single owner, it would file
Schedule
C or C-EZ
(Form 1040).
If an LLC is treated as a partnership, see Publication
541 for information on partnerships.
If it is treated as a corporation, see Publication
542 for information on corporations.
Important References:
Publication
541
Partnerships
Publication
542
Corporations
Form
1065
U.S. Partnership Return of Income
Form
1120
U.S. Corporation Income Tax Return
Form
1040 Schedule C
Profit or Loss from Business
Form
1040 (C-EZ)
Net Profit from Business