LLC Classification for Tax Purposes

An LLC can be classified in multiple ways for federal tax purposes, depending on the number of members and the elections made by the business.

  • Single-member LLC
  • Multi-member LLC

Single-member LLC

A single-member LLC, as the name suggests, is an
LLC with only one owner (member). For tax purposes, single-member LLCs can be classified into
two categories:

Sole Proprietorship (Disregarded Entity) Corporation

By default, the IRS treats single-member LLCs as disregarded entities. This means the LLC’s income and expenses are reported directly on the owner's personal tax return, typically using
Form 1040.

If the owner files Form 8832 and chooses to treat the LLC as a corporation, they must file Form 1120 (for C-Corporations) or Form 1120-S (for S-Corporations) to report the LLC’s income and expenses.

Multi-Member LLC

A Multi-Member LLC consists of two or more members (owners). For tax purposes, it can be classified in one of the following ways:

Partnership C-Corporation S-Corporation

By default, Multi-Member LLCs are treated as partnerships for tax purposes. These LLCs are required to file Form 1065 annually to report their financial information. The profits and losses of the LLC pass through to the members’ personal
tax returns.

If the Multi-Member LLC elects to be treated as a C-Corporation by filing Form 8832, it is subject to corporate tax rules. The LLC must
file Form 1120 annually to report its income and expenses to the IRS.

If the LLC elects to be taxed as an
S-Corporation, it must
file Form 1120-S annually to report its income and losses to the IRS. This allows the LLC to avoid double taxation, with profits passing through to the members' personal tax returns.


When is the Deadline to File LLC
Tax Returns?

The deadline for LLCs can vary depending on the type of tax forms the LLC is required
to file:

Business Type Deadline

Single or Multi-member LLC (Treated as
S corporation)

March 17, 2025

Multi-member LLC (Treated as Partnership)

Single or Multi-Member LLCs (Treated as
C-Corporation)

April 15, 2025

Single-Member LLCs (Treated as
Sole Proprietorship)


How to File an IRS Tax Extension for an LLC?

  • For Single-member LLC

    A single-member LLC treated as a sole proprietorship (disregarded entity) that needs more time to file a 1040 can request additional time by filing Form 4868.

    A single-member LLC treated as a Corporation or Partnership that needs more time to file Form 1120 or 1120-S and can file Form 7004 to request an extension for the
    filing deadline.

  • For Multi-member LLC

    Multi-member LLCs (Partnerships, C-corporations, or
    S-corporations) that need more time to file tax returns can request additional time by filing Form 7004.

    Filing Form 7004 and 4868 on or before the original filing deadline will get an automatic extension of 6 months from the IRS to file the tax returns. This extension is automatic, so you are not required to provide any reason to the IRS for requesting additional time.

Note : Filing an IRS tax extension can extend only the filing deadline, not the deadline to pay the taxes owed. Any pending tax payments must be paid by the original tax form filing deadline.


File Your LLC Tax Extension with ExpressExtension

ExpressExtension is a leading IRS-authorized e-file service provider that simplifies the tax extension request process. We offer a comprehensive solution for all sizes of businesses, including LLCs, to file an extension form with the IRS.

You can quickly complete and e-file your Form 7004 or 4868 extension within a few minutes and secure your automatic extension approval immediately. Follow the steps below to file your extension:

  • Step 1: Choose Form 7004 or 4868 and enter the basic
    business information.
  • Step 2: Select the form type for which you need to request
    an extension.
  • Step 3: Enter the required form details, complete the tax payment, and transmit it to the IRS.

With ExpressExtension, you can get your automatic extension in just a few clicks. Our AI-powered assistance and world-class customer support team are always available to assist you via phone, email, and live chat during the extension filing process.

Avoid IRS late filing penalties by e-filing your LLC’s extension now!


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