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Form 1065

Form 1065

Form 1065 is the required tax form for multi-member LLCs that are taxed as partnerships. In the United States, multi-member LLCs are taxed as partnerships by default. If all owners are U.S. citizens or residents, a multi-member LLC can elect to be taxed as something called an S Corporation. LLCs with non-resident owners cannot make this election. Multi-member LLCs with non-resident owners can elect for the LLC to be treated as a C Corporation. If the election to be treated as a C corporation is made, all taxes would be filed as a corporation.

Nearly all foreign-owned, multi-member LLCs are taxed as partnerships.

Form 1065 is due March 15th of each year. This is important to note because April 15th is the most common tax due date in the United States. Form 1065 is due earlier and has serious late penalties. Many new clients contact us after March 15th each year, thinking the due date is April 15th.

No tax is paid on Form 1065. If there is U.S. sourced taxable income, the members of the LLC would need to file Form 1040-NR to pay the taxes.

In the above case, Form 8804 and Form 8805 would be required for the withholding of tax on the distribution of income to foreign members.

Most clients do not require Form 1040-NR, Form 8804, or Form 8805, but it can be required for some clients.

Form K-1, Form K-2, and Form K-3 are all a part of the Form 1065 filing.

Members of an LLC who file Form 1065 do not need Individual Taxpayer Identification Numbers, or ITINs, if they will not be paying individual tax but they can obtain ITINs if desired.

Form 1065 can be electronically filed.

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