Tax filing
How to File Taxes for an LLC [2026]
The tax forms you need depend on how many members your LLC has and whether you've elected S-Corp status. This guide covers the three common scenarios and the deadlines, forms, and deductions for each.
LLC Tax Filing by Entity Type
| LLC Type | Tax Form | Deadline | SE Tax? |
|---|---|---|---|
| Single-member (default) | Schedule C (Form 1040) | April 15, 2027 | Yes — 15.3% on net income |
| Multi-member (default) | Form 1065 + Schedule K-1 | March 15, 2027 | Yes — 15.3% on distributive share |
| LLC electing S-Corp | Form 1120-S + Schedule K-1 | March 15, 2027 | Yes — on salary only |
| LLC electing C-Corp | Form 1120 | April 15, 2027 | No (but double taxation) |
Source: IRS.gov — Instructions for Form 1065, Form 1120-S, Schedule C (2025/2026 tax year).
Single-Member LLC: Step-by-Step
Step 1: Gather your documents
Profit and loss statement (use our profit margin calculator), all receipts for deductible expenses, 1099-NEC forms from clients, and records of quarterly estimated tax payments.
Step 2: Complete Schedule C
Report your LLC's income and expenses on Schedule C (Form 1040). Key sections: Part I (income), Part II (expenses), Part III (COGS if applicable — use our COGS calculator), and Part IV (vehicle/mileage).
Step 3: Calculate self-employment tax
Use Schedule SE to calculate the 15.3% self-employment tax on your net earnings. You can deduct half of the SE tax as an adjustment to income. Use our 1099 tax calculator to estimate your total tax.
Step 4: Complete Form 1040
Transfer Schedule C net income and Schedule SE tax to your main 1040 form. Don't forget the QBI deduction (Form 8995) and any estimated tax payments already made.
Key Deductions for LLC Owners
Home office deduction ($5-$15/sq.ft. or actual expenses)
Must be exclusive and regular use. Simplified method: $5/sq.ft. up to 300 sq.ft. Actual method: percentage of rent, utilities, insurance, and maintenance.
Vehicle and mileage ($0.70/mile in 2026)
Standard mileage rate or actual expense method. Keep a contemporaneous mileage log. See our vehicle depreciation guide.
Health insurance premiums (deduct on 1040, not Schedule C)
Full deduction for premiums paid for you, spouse, and dependents. Must have net profit from the LLC to qualify.
Retirement contributions (SEP IRA: up to 25% of net earnings)
SEP IRA and Solo 401(k) contributions reduce taxable income. 2026 limit: $70,000 (combined employee + employer). See our SEP IRA vs Solo 401k guide.
Quarterly Estimated Tax Payments
LLC owners must pay quarterly estimated taxes if they expect to owe $1,000 or more. Use our quarterly tax calculator to estimate your payments and sign up for reminders before each deadline.
Frequently asked questions
Does an LLC pay taxes differently than a sole proprietorship?+
A single-member LLC is taxed identically to a sole proprietorship by default — you report business income on Schedule C of your personal tax return. The LLC structure provides liability protection but doesn't change your tax treatment unless you elect S-Corp or C-Corp status. Multi-member LLCs file a separate partnership return (Form 1065) but still pass income through to personal returns.
Should my LLC elect S-Corp status to save on taxes?+
S-Corp election can save on self-employment tax because only your salary portion (not distributions) is subject to SE tax. It's generally worth considering when your LLC's net income exceeds $60,000-$80,000. However, it adds accounting complexity and costs $1,500-$3,000/year in extra professional fees. See our LLC vs S-Corp guide for a detailed comparison.
What is the QBI deduction and how does it apply to LLCs?+
The Qualified Business Income (QBI) deduction allows eligible LLC owners to deduct up to 20% of their qualified business income from their taxable income. For 2026, the deduction phases in above $197,300 (single) / $394,600 (married) of taxable income for SSTB businesses (health, law, consulting, etc.). Non-SSTB businesses qualify regardless of income level. Use our QBI deduction calculator to estimate your deduction.
Can an LLC deduct health insurance premiums?+
Yes. LLC members can deduct health insurance premiums for themselves, their spouse, and dependents as an adjustment to income (not as an itemized deduction). This deduction is taken on Form 1040, not on the LLC's return. The insurance plan must be established under the LLC's name. This is one of the most valuable deductions for LLC owners.
What happens if I miss the quarterly estimated tax deadline?+
The IRS charges a penalty on the amount you underpaid, calculated from the original due date to the date you actually pay. The penalty rate is the federal short-term rate plus 3%, adjusted quarterly. You can reduce or avoid the penalty by using the annualized income installment method (Form 2210 Schedule AI) if your income was uneven throughout the year.