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How do I file taxes for my LLC?

The IRS doesn’t have a single tax form for LLCs. How you file depends entirely on how your LLC is classified for tax purposes.

If you’re a single-member LLC and haven’t made any special elections, the IRS treats you as a “disregarded entity.” That means your business income and expenses go on Schedule C of your personal Form 1040. You don’t file a separate business return. Your profit flows directly to your personal tax return and you pay self-employment tax (Social Security and Medicare) on the net income. This is the default for most solo contractors and tradespeople.

If your LLC has two or more members, the IRS defaults to treating it as a partnership. You’ll file Form 1065, which is an informational return. The LLC itself doesn’t pay income tax. Instead, each member receives a Schedule K-1 showing their share of the profit or loss, and they report it on their personal returns. Partnership returns are due March 15, not April 15, and missing that deadline triggers a penalty of $220 per partner per month.

Many LLC owners elect S-corp status by filing Form 2553 with the IRS. With this election, you file Form 1120-S and the business issues K-1s to the owners. The main advantage is that only the salary you pay yourself is subject to self-employment tax. Profits above that reasonable salary are not. For trade businesses generating solid profit, this can save thousands in taxes each year. But you have to actually run payroll for yourself, which adds complexity and cost.

In California, every LLC owes an $800 minimum franchise tax to the Franchise Tax Board regardless of how much money you made. If your gross revenue exceeds $250,000, there’s an additional LLC fee on top of that. These are easy to forget and the state will send you a bill with penalties if you miss them.

Beyond filing the right forms, accurate books are what make the whole process work. If your income and expenses aren’t tracked properly throughout the year, your tax return is just a guess. A Long Beach bookkeeper who understands trade businesses can keep everything organized so nothing falls through the cracks when it’s time to file.

Quarterly estimated tax payments are also your responsibility as an LLC owner. The IRS expects you to pay taxes as you earn income, not all at once in April. If you underpay throughout the year, you’ll owe an estimated tax penalty on top of your balance due.

The best approach is to figure out the right classification for your situation, keep your books current, and work with someone who handles business tax returns for your type of business. The forms and deadlines vary, but the foundation is always the same: clean records and the right entity structure for your income level.

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More Questions

How does vehicle depreciation work for contractors?

Depreciation lets you deduct the cost of a work vehicle over time, but heavy trucks and vans over 6,000 lbs qualify for much larger first-year deductions through Section 179 and bonus depreciation. Business use percentage and proper documentation determine how much you can actually claim.

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What is catch-up bookkeeping?

Catch-up bookkeeping is the process of recording, organizing, and reconciling all the financial transactions your business missed over weeks, months, or even years. It brings your books current so you have accurate financials going forward.

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What should a contractor's invoice include?

A contractor's invoice should include your business and license info, project details, a clear breakdown of work performed, payment terms, and retention if applicable. Good invoices get you paid faster and keep your books clean.

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Can I write off materials I buy for a job?

Yes. Materials purchased for a job reduce your taxable income whether they're classified as cost of goods sold or job expenses. The key is tracking them properly so nothing gets missed at tax time.

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How do I set up classes in QuickBooks for different job sites?

Turn on class tracking in QuickBooks Online settings, then create a class for each job site. Assign the correct class to every transaction so you can pull profit and loss reports by job and see which sites are actually making money.

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When are estimated tax payments due?

Federal estimated tax payments are due four times a year: April 15, June 15, September 15, and January 15. California follows the same schedule. Missing a deadline triggers penalties and interest even if you pay in full when you file.

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Long Beach CPA firm specializing in contractors, trades, and service businesses. Bookkeeping, tax preparation, IRS representation, and advisory services for businesses across the South Bay and Greater LA. Owned and operated by a CPA with over a decade of hands-on experience.

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