What tax returns does an LLC need to file?

A single-member LLC files Schedule C with the owner's personal Form 1040. A multi-member LLC files Form 1065 (partnership return) and issues K-1s to each member. An LLC taxed as an S-Corp files Form 1120-S. All LLCs may also need to file state tax returns, pay estimated quarterly taxes, and handle sales tax if applicable. Additionally, foreign-owned LLCs must file Form 5472.

Does my LLC need a separate bank account?

Yes. Maintaining a separate business bank account is essential for LLC liability protection and accurate bookkeeping. Commingling personal and business funds can "pierce the corporate veil" and expose your personal assets to business liabilities. It also makes tax preparation significantly more complex and expensive when transactions are mixed.

What are the ongoing tax obligations for an LLC?

Beyond the annual tax return, LLCs must make quarterly estimated tax payments (if expecting to owe $1,000+), pay state franchise taxes or annual fees (California charges an $800 minimum franchise tax), maintain proper bookkeeping, file annual reports with the state, and handle payroll tax filings if the LLC has employees or is taxed as an S-Corp.

How much does LLC tax preparation cost?

At Arc & Ledger, LLC tax returns start at $850 for a single-member LLC with straightforward finances. Multi-member LLCs and S-Corp returns are priced based on complexity, number of members, states, and any international reporting requirements. We provide a clear fee estimate before beginning any work.

Can you help with a foreign-owned LLC?

Yes. Foreign-owned single-member LLCs have a mandatory Form 5472 filing requirement. The penalty for failing to file is $25,000 per form, per year. We handle Form 5472 preparation, annual reporting, and ongoing compliance for foreign-owned LLCs, including EIN maintenance and registered agent services.

LLC Tax Services & Accountant | Los Angeles

LLC Tax Services

Your LLC structure determines how you are taxed, what you file, and what obligations you carry year-round. Whether you are a single-member LLC filing a Schedule C, a partnership issuing K-1s, or considering an S-Corp election to reduce self-employment tax, we handle the compliance so you can focus on your business.

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In short: We handle LLC taxes end to end: Schedule C returns for single-member LLCs, partnership returns with K-1s for multi-member LLCs, Form 5472 filings for foreign-owned LLCs, and analysis of whether an S-Corp election makes sense. It is for LLC owners who want an Enrolled Agent firm managing federal and state compliance year-round.

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What's Included

Preparation of your LLC return based on how the LLC is taxed (Schedule C, 1065, or 1120-S)
One state return
Federal e-file

Timeline: Standard preparation once your books and documents are complete.

Not included:

Bookkeeping cleanup (separate)
Payroll
Additional states or entities
Owner personal returns for a partnership or S-corp (separate)

Tax Services Built for LLC Owners

An LLC is the most popular business structure in the United States, but many LLC owners do not fully understand their tax obligations. The IRS does not have a specific "LLC tax classification." Instead, your LLC is taxed based on its default classification (disregarded entity or partnership) or an election you make (S-Corp or C-Corp).

The right classification depends on your income level, number of members, growth plans, and whether you have employees. Making the wrong choice, or failing to make a choice at all, can cost thousands in unnecessary taxes.

At Arc & Ledger, we help LLC owners understand their options, choose the optimal structure, and stay compliant year-round. Every engagement starts with a clear assessment of your situation and a transparent fee estimate.

What We Handle for LLCs

Annual tax return preparation (Schedule C, Form 1065, or 1120-S)
S-Corp election filing (Form 2553) and payroll setup
Quarterly estimated tax payment calculations
State franchise tax and annual report filings
Form 5472 for foreign-owned LLCs ($25,000 penalty if missed)
Entity selection analysis (LLC vs S-Corp vs C-Corp)
Bookkeeping and monthly financial statements
IRS representation in audits and notices
Multi-state tax registration and compliance

How Different LLC Types Are Taxed

LLC Type	Tax Form	Self-Employment Tax	Best For
Single-Member LLC	Schedule C (Form 1040)	15.3% on all net income	Freelancers, solo businesses under $50K net
Multi-Member LLC	Form 1065 + K-1s	15.3% on each member's share	Partnerships, joint ventures
LLC taxed as S-Corp	Form 1120-S + K-1s	Only on reasonable salary	Profitable businesses ($50K+ net income)
Foreign-Owned LLC	Form 5472 + Pro Forma 1120	Varies by activity	Non-resident aliens with U.S. LLCs

LLC Tax Preparation Pricing

Single-Member LLC (Schedule C)

From $850

Filed with personal 1040

Multi-Member LLC (Form 1065)

From $1,595

Partnership return + K-1s ($125/K-1)

S-Corp LLC (Form 1120-S)

From $1,595

Corporate return + K-1 + payroll

Foreign-Owned LLC (Form 5472)

From $1,800

Mandatory annual filing

Final pricing depends on the number of states, schedules, and international reporting requirements. We provide a clear estimate after reviewing your documents.

Frequently Asked Questions

Common questions about this service area.

A single-member LLC is taxed as a disregarded entity by default, meaning all income and expenses flow through to your personal tax return on Schedule C. A multi-member LLC is taxed as a partnership (Form 1065), with each member receiving a Schedule K-1. In both cases, the members pay self-employment tax (15.3%) on their share of net income. An LLC can also elect to be taxed as an S-Corp or C-Corp.

An S-Corp election typically makes sense when your LLC net income consistently exceeds $50,000-$60,000 per year. The S-Corp structure allows you to pay yourself a "reasonable salary" (subject to payroll taxes) and take remaining profits as distributions (not subject to self-employment tax). The savings on self-employment tax must outweigh the added costs of payroll processing and a more complex tax return.

Related Guides

Learn more about this topic with our in-depth guides.

LLC vs S-Corp: Which Is Right for You?

Compare entity structures side-by-side to determine the best tax treatment for your business.

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Small Business Tax Guide

Complete guide to deductions, estimated payments, state taxes, and when to hire a tax accountant.

Read Guide

CPA vs Enrolled Agent

Understand which tax professional is the right fit for your LLC.

Read Guide

Related Services

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Business Formation (LLC/Corp)

Form a new LLC or corporation with EIN, registered agent, and compliance setup included.

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Bookkeeping & Monthly Accounting

Ongoing bookkeeping to keep your LLC records clean and tax-ready throughout the year.

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Get Your LLC Taxes Right

Schedule a free 15-minute consultation. We will assess your LLC structure, recommend the optimal tax treatment, and provide a clear fee estimate.

“Arc & Ledger provided exceptional service, making my tax preparation seamless and stress-free.”– Christian S., Google Review

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