This tax form, which is part of Form 1065, summarizes their share of LLC income, losses, credits and deductions. Each member will pay taxes on the LLC’s income in proportion to their ownership ...

Members of an LLC that is taxed as a partnership use the information from Schedule K-1 when they prepare their personal tax returns. Form 1040 is the only form they can use, because partnership ...

If you choose to have your LLC taxed as a partnership, it must file a partnership tax return on Form 1065 and provide each member with a Schedule K-1, indicating the member's share of the company ...

If an LLC has only one owner (known as a member), it is not treated as separate from its owner unless the LLC files Form 8832 and opts to be treated as a corporation for federal income tax purposes.

Corporation (Form 1120 or 1120S): Any LLC can elect to be treated as a traditional C corporation or as an S corporation for tax purposes. We’ll explain more about each option and its choices.

The LLC itself does not pay taxes or need to file a return with the state of Delaware. Unlike Wyoming, the state doesn’t have an annual report fee, though it requires a $300 annual franchise tax.

FICA tax (Social Security and Medicare taxes)— The employee’s pay deduction is 7.65%, and the employer pays the other 7.65%. FUTA— Federal Unemployment Tax is paid by employers.