LLC Income is Reported How?

How is the LLC income reported? 

The IRS considers the single member LLC to be a “disregarded” entity.  That means, it is reported for tax purposes exactly the same as a sole proprietor with no additional reporting requirements.  That’s still a part of the GOOD, ease of reporting income. 

A multiple member LLC comes under the partnership tax rules.  Thus, a partnership tax return is required.  In a partnership, partners take draws and do not have the same distribution rules as do “S” corporations.  Substitute the word members for partners.  That’s GOOD.

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