New LLC… Do I Need to File a 1065?

It’s me and my dad in the LLC. We’re talking simple income, not much. We made the LLC mainly for liability protection. We’ve tracked all income perfectly. Now I’m trying to figure out what to file.

I thought 1065 was the way to go, but it seems like that’s for larger businesses? I don’t want to be overtaxed or deal with double taxation. What should I do here?

Also, I’m not sure if I’m considered an S corp or C corp. How do I check that? Thanks in advance!

The first step is figuring out if your LLC is just a partnership or if you elected to be taxed as a corporation.

If it’s a partnership, then yes, you’d file a 1065 and issue a K-1 to each member.

Jael said:
The first step is figuring out if your LLC is just a partnership or if you elected to be taxed as a corporation.

If it’s a partnership, then yes, you’d file a 1065 and issue a K-1 to each member.

How can I figure that out? I have all the paperwork from when we set up the LLC. I’ve checked them, but there’s no mention of S corp or C corp anywhere, just a certificate confirming the LLC.

I can share the documents (with personal details redacted) if that helps. For now, here’s a screenshot:

https://prnt.sc/hWs1ectzdbcu

https://prnt.sc/zmn_-dW4lxER

@Tru
Did you ever file paperwork to be treated as an S corp or C corp? Also, have you filed any business taxes for 2022 or 2023? If you have copies, they might help answer this.

Jael said:
@Tru
Did you ever file paperwork to be treated as an S corp or C corp? Also, have you filed any business taxes for 2022 or 2023? If you have copies, they might help answer this.

No, I’ve never filled out anything about S or C corp.

This is actually our first year filing taxes because the LLC didn’t make any money until 2024.

Thanks for helping me figure this out!

@Tru
In that case, it sounds like you’re just a partnership and haven’t made any corporate election.

How much income did the partnership generate in 2024?

Jael said:
@Tru
In that case, it sounds like you’re just a partnership and haven’t made any corporate election.

How much income did the partnership generate in 2024?

Gross income was $17,871.29. Net income is a lot less, but I can calculate the exact number if that helps.

@Tru
With that income level, it’s actually a good thing you didn’t choose S corp status. As a partnership, you can both claim the QBI deduction on your income without worrying about payroll taxes.

Jael said:
@Tru
With that income level, it’s actually a good thing you didn’t choose S corp status. As a partnership, you can both claim the QBI deduction on your income without worrying about payroll taxes.

Oh, that’s great news! I was worried about being double-taxed if it was a C corp. I’ll go ahead and file the 1065 to generate the K-1s for each of us.

Thanks for clearing this up!

@Tru
No problem! And just to clarify, you’re not a C corp—your LLC is treated as a partnership. Best of luck!

It looks like you’ll need to file a partnership return (Form 1065) and possibly some additional paperwork for your state. After that, the net income gets divided between you and your dad and reported on Schedule K-1.

@Dale
Got it, thanks! Starting on that now.

Quick question: Do you happen to know what the state requirements are for Texas? If not, no worries—I can look it up.