Overview

A new single-member LLC (SMLLC) typically files federal taxes through the owner’s individual return, but federal filing obligations depend on activities during the tax year. Key triggers that change what you must file include hiring employees, electing corporate tax treatment, or having the LLC classified differently for federal tax purposes.

Key federal filings and when they apply

When the LLC is a ‘‘disregarded entity’’

Most single-member LLCs are treated as disregarded entities by default. That means the IRS ignores the LLC for federal income tax and the owner reports business results on their Form 1040 (Schedule C). A disregarded status does not eliminate payroll or excise tax obligations if those activities exist.

Electing a different classification

If you file Form 8832 to be taxed as a corporation, or Form 2553 for S-Corp status, the LLC’s federal filing profile changes and the entity will file corporate returns (Form 1120 for C Corps or Form 1120-S for S Corps). Elections have eligibility and timing rules—review IRS instructions before filing.

Common deadlines and timing rules

  • Individual income tax (Form 1040 and Schedule C): due the regular April deadline (tax-year dependent) or extended date if you file for extension.
  • Form 2553 (S election): generally filed by March 15 for calendar-year S corp elections (special rules can permit late relief).
  • Form 8832: timing rules in the instructions—file within the required window to make an election effective for a specific tax year.
  • Employment returns and deposits: quarterly/annual deadlines for Form 941 and Form 940 and periodic deposit schedules for payroll taxes.

Practical tips for new SMLLC owners

  1. Get an EIN early if you’ll hire, open business payroll, or want separate banking — it simplifies vendor onboarding and payroll setup. (IRS EIN page)
  2. Keep clear, contemporaneous records. Good bookkeeping underpins accurate Schedule C reporting and substantiates deductions.
  3. Run quarterly estimated-tax projections if you expect positive net income — paying quarterly can avoid underpayment penalties. (IRS 1040-ES)
  4. Consider the S-Corp election if you have consistent, meaningful net profit; it can reduce self-employment tax exposure but adds payroll and compliance costs. Work with a CPA before electing. See our guide on choosing tax forms for small businesses for context: Choosing the Right Business Tax Form: LLC, S Corp, or C Corp.
  5. Use a payroll provider when you hire employees; it reduces errors in withholding, deposits, and Form 941/940 filings.

Common mistakes to avoid

  • Treating the LLC as informal for tax or payroll purposes. Disregarded for income tax does not remove payroll, sales tax, or excise obligations.
  • Missing payroll deposits or filings after hiring — these trigger penalties quickly.
  • Late or improper elections without reading IRS timing rules (Forms 2553 and 8832 have strict effective-date rules).

Real-world example

A freelance designer formed an SMLLC and continued reporting sales and expenses on Schedule C. When revenue rose and she hired a contractor and then an employee, she obtained an EIN, set up payroll withholding, and began quarterly deposits and Form 941 filings. Later she consulted a CPA and made an S-election (Form 2553) to test whether paying herself a reasonable salary plus distributions reduced overall tax liability.

Helpful internal resources

Authoritative sources

Professional disclaimer

This article is educational and reflects general federal filing rules for single-member LLCs current as of 2025. It is not personalized tax or legal advice. Consult a CPA or tax attorney to determine the best filing approach for your facts and state-law requirements.