Tax Extension for Limited Liability Companies (LLC)

Stumped on starting a business? Have you considered forming a Limited Liability Company (LLC)?

Limited Liability Companies are becoming one of the most popular forms of business in the United States because of the flexibility and “Pass Through” status that are associated with LLCs; another word for this advantage is called Pass-Through Taxation.

This means all the profits and losses “pass through” the business and straight to you or the individual members who own the business. That information is then reported on your own tax return. By doing this, you’ll be paying less taxes because profits are not taxed at both the business level and the personal level.

Another advantage to operating a LLC is that, as the owner, you usually aren’t responsible for the company’s debts and liabilities. There are many different types of LLCs; some have the option to choose a preferred type of tax structure. As far as IRS tax extension goes, there are three types of LLCs that are recognized:

Single-Member LLC
The IRS considers a Single Member LLC to be a “Disregarded Entity” in which activities of the LLC should be reflected on your own tax return. To file a tax extension for a Single Member LLC, you should use the Personal Tax Extension Form 4868.

Multi-Member LLC
If your LLC has multiple owners, the IRS will treat the business as a Partnership unless it has elected otherwise. In this case, your Multi-Member LLC can file the Business Tax Extension Form 7004 to receive an additional five to six months of time to file your tax return.

Multi-Member LLC as a Corporation
With at least two members, your LLC is classified as a partnership for federal income tax purposes unless you file a Form 8832 and elect your LLC to be recognized as a corporation. A Multi-Member LLC as a Corporation can receive a six month tax extension by also filing the Business Tax Extension Form 7004.

There aren’t any limits to the number of members your LLC can have, but keep in mind that there are some types of businesses that cannot become LLCs like banks or insurance companies. Before you decide to form an LLC, it may be best for you to consult with a lawyer and review the requirements for your state as well as the federal tax regulations for further information.

If you need more time to file, keep your LLC compliant with IRS regulations by e-filing your tax extension with ExpressExtension. We offer support for tax extensions needed for Single-Member and Multi-Member LLCs. By working closely with the IRS, we provide a fast and secure service that will save you time and money.

For any assistance or questions about e-filing any of our available extensions, our live professionals are standing by. Contact us by phone Monday through Friday from 9am to 6pm, Eastern Standard Time, at (803) 514-5155, by email at [email protected], or by live chat at www.expressextension.com.