CPA of Denver provides tax preparation for single-member and multi-member LLCs, including LLCs taxed as sole proprietorships, partnerships, S corporations, or C corporations. Because an LLC is a legal structure rather than a single federal tax classification, the first step is determining how the entity is actually taxed.
Denver LLC Tax Preparation
LLC tax filings depend on the number of owners and any federal tax elections. We review the entity’s classification, prior filings, ownership, payroll, accounting records, and Colorado obligations before preparing the applicable return.
How LLCs Are Taxed
- Single-member LLC ␔ generally reported on the owner’s Form 1040 unless a corporate election is in effect.
- Multi-member LLC ␔ generally files Form 1065 as a partnership unless another election applies.
- LLC taxed as an S corporation ␔ files Form 1120-S and generally requires payroll coordination.
- LLC taxed as a C corporation ␔ files Form 1120.
LLC Tax Issues We Commonly Address
- Uncertainty about the LLC’s current tax classification
- Late or missing tax elections
- Owner draws and distributions
- Payroll and reasonable compensation
- Changes from one owner to multiple owners
- Bookkeeping and business/personal expense separation
- Colorado tax filings
- Transition from Schedule C to S corporation treatment
Multi-Member LLC and Partnership Returns
For Colorado multi-member LLCs taxed as partnerships, the filing typically includes federal Form 1065, Schedule K-1 reporting, and applicable Colorado partnership tax returns.
A multi-member LLC taxed as a partnership generally files Form 1065 and issues Schedule K-1s to its members. See our partnership tax return preparation service for Form 1065 filings.
LLCs Taxed as S Corporations
An LLC that has elected S corporation treatment generally files Form 1120-S. See our S corporation tax return preparation service for more information.
Frequently Asked Questions
What tax return does an LLC file?
It depends on ownership and tax elections. An LLC may be disregarded for federal tax purposes, taxed as a partnership, an S corporation, or a C corporation.
Should my LLC elect S corporation status?
The answer depends on profit, payroll, administrative cost, reasonable compensation, and other facts. The decision should be modeled rather than assumed.
Can you review prior LLC filings?
Yes. We can review prior returns and election history to determine the entity’s current tax classification and identify corrective filings that may need consideration.