Many small business owners opt to organize as limited liability companies (LLCs) to avoid personal liability for business debts and legal obligations. While LLCs offer some legal protections, they are not recognized by the IRS, potentially leaving owners responsible for the business’s tax obligations.
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.
Q: What form does a partnership file?
A: Partnerships file Form 1065, U.S. Return of Partnership Income.
Q: Do all LLCs have to pay an annual fee, or are there exceptions?
A: It depends on the state in which the LLC was formed and possibly where they operate, if different.
Q: Do SMLLCs need to file a BOI report?
A: Yes, LLCs are subject to the BOI ownership reporting requirements.
Q: Does LLC liability protection vary from state to state?
A: Yes, LLC liability protection varies from state to state.
To learn more about selecting the right entity classification for an LLC, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial at natptax.com/explore.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.