Form 1065: the multi-member LLC return is due March 15

An LLC with two or more members, unless it has elected to be taxed as a corporation, is a partnership for the IRS and files Form 1065. It pays no tax itself: it allocates its results to the partners, who report them on their own returns.

Why it is due March 15

For a calendar-year partnership, Form 1065 is due March 15, a month before the personal return. Each partner needs a K-1, the schedule with their share of income, expenses and credits, to prepare their own return.

The extension

Form 7004 grants an automatic six-month extension, to September 15. It must be filed before March 15.

The late-filing penalty

The penalty is computed per partner and per month late, up to twelve months, even if the partnership owes no tax. For an LLC with several partners, a few months' delay already costs several thousand dollars.

Foreign partners

If a partner is foreign and the partnership has income connected with a U.S. business, the partnership must withhold tax on that partner's share and file Forms 8804 and 8805. Each foreign partner also receives the international schedules K-2 and K-3 when they apply.

What to prepare

The year's bank statements, each partner's contributions and withdrawals and any ownership changes. With that, the books the return needs are put together.