Can you file a form 1065 for a single-member LLC

Filing Requirements for a Single-Member LLC

Form 1065 Filing Requirement

Form 1065, U.S. Return of Partnership Income, is generally used by partnerships to report their income, gains, losses, deductions, and credits to the IRS. However, for a single-member LLC (SMLLC) that has not elected to be treated as a corporation, Form 1065 is not the appropriate form.

Single-Member LLC Tax Treatment

According to the information provided:

- A single-member LLC is treated as a disregarded entity for income tax purposes unless it elects to be treated as a corporation by filing Form 8832.

- The income and deductions of the LLC should be reported directly on the owner's personal income tax return.

- If the owner is an individual, the LLC's activities are generally reported on the individual's Form 1040 or 1040-SR using:

 - Schedule C (Profit or Loss from Business) if the LLC is engaged in a trade or business.

 - Schedule E (Supplemental Income or Loss) if the LLC has rental or royalty income.

 - Schedule F (Profit or Loss from Farming) if the LLC is engaged in farming activities.

Employment and Excise Tax Considerations

While the SMLLC is disregarded for income tax purposes, it is still considered a separate entity for employment taxes and certain excise taxes. An EIN is required for the LLC if it has employees or needs to file any of the listed excise tax forms.

Final Considerations

- The SMLLC should use the owner's SSN or EIN for income tax purposes unless it has an EIN for employment tax or excise tax requirements.

- If the SMLLC is owned by a corporation or partnership, it should be reported on the federal tax return as a division of the corporate or partnership owner.

In conclusion, a single-member LLC should not file Form 1065 unless it has elected to be treated as a corporation. Instead, the owner should report the LLC's activities on their personal tax return using the appropriate schedules based on the nature of the income. For further details, you can refer to the IRS guidance on [Single Member Limited Liability Companies].

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Sources:

Single Member Limited Liability Companies | Internal Revenue Service 2024-08-03

LLC Filing as a Corporation or Partnership | Internal Revenue Service 2024-08-03

2023 Instructions for Schedule F (2023) | Internal Revenue Service 2024-08-03

2023 Instructions for Schedule C (2023) | Internal Revenue Service 2024-08-03

Publication 1635 (Rev. 2-2014) | Internal Revenue Service 2024-08-03

2023 Instructions for Schedule E (2023) | Internal Revenue Service 2024-08-04

2023 Instructions for Form 1065, Future Developments 23 | Internal Revenue Service 2024-08-03

2023 Instructions for Schedule C, From Business Profit or Loss | Internal Revenue Service 2024-08-03

2023 Instructions for Form 1120 | Internal Revenue Service 2024-07-31

Closing a business | Internal Revenue Service 2024-08-04