Forming an LLC is a fantastic step for protecting your personal assets.

But when tax season for 2025 arrives, many new owners are left wondering: "How does my LLC actually get taxed?" The answer depends on how you've elected to be classified.

Default Tax Classifications

By default, the IRS classifies your LLC based on the number of members for the 2025 tax year:

• Single-Member LLC: Treated as a "disregarded entity." You'll report 2025 business income and expenses on Schedule C of your personal Form 1040.
  
  

• Multi-Member LLC: Treated as a partnership. You'll file Form 1065 to report the business's 2025 income, and each member receives a Schedule K-1 to report on their personal return.

Electing Corporate Status

You can also elect to be taxed as an S-Corp or C-Corp by filing Form 2553 with the IRS. This can offer tax savings but comes with more complexity...

Key Forms You'll Need for 2025-2026

• Schedule C (for Single-Member): The heart of your tax filing, where you list all 2025 income and deductible expenses.
  
  

• Form 1065 & Schedule K-1 (for Multi-Member): For reporting the partnership's 2025 financials.
  
  

• Form 1120-S (for S-Corp): The corporate tax return for an S-Corp for 2025.

The Importance of Clean Books

No matter the classification, the key to a smooth 2025 tax filing is accurate bookkeeping throughout the year. Separate your business and personal finances and track every expense.

LLC tax filing for 2025 doesn't have to be complicated, but getting it right is crucial for your business's health. FINVO specializes in Business & LLC Tax Filing, handling everything from income reporting to depreciation. Focus on growing your business, we'll handle the tax compliance.