Form 1065 and Schedule K-1: Multi-Member LLC Tax Filing

If your LLC has two or more owners, the IRS taxes it as a partnership by default. That means an annual Form 1065 for the LLC and a Schedule K-1 for each member. Here is how it works and what to watch out for.

How Multi-Member LLC Taxes Work

A multi-member LLC is a pass-through entity. The LLC does not pay federal income tax itself. Instead, it reports its income and expenses, then passes each member their share of the profit or loss to report on their own return. See single vs multi-member LLCs for how the structures differ.

What Is Form 1065?

Form 1065 is the US Return of Partnership Income. The LLC files it once a year to report total revenue, deductions, and how profit or loss is allocated among members. No tax is paid with the 1065 itself; it is an information return that ties the members' shares together.

What Is Schedule K-1?

Each member receives a Schedule K-1 showing their share of the LLC's income, deductions, and credits. Members use the K-1 to report their portion on their personal return (or corporate return if a member is a company). The LLC files all K-1s together with Form 1065.

Deadlines and Penalties

Form 1065 is due March 15 for calendar-year LLCs, a month before personal returns, so members get their K-1s in time. You can extend six months with Form 7004. The late-filing penalty is charged per member, per month, so for a multi-member LLC it adds up fast.

Non-Resident Members

A partnership with foreign members may have to withhold US tax on their share of effectively connected income and file extra forms. Foreign-owned single-member LLCs file Form 5472 instead. If you have non-US owners, professional filing is strongly recommended.

How StartGlobal Helps

Federal tax filing for single-member and multi-member LLCs, including Form 1065 and Schedule K-1s and non-resident owner filings, is included in your $149/month plan. We prepare and file accurately and on time so you avoid per-member penalties.

Frequently Asked Questions