Do I Really Have to File Form 1065 for My LLC?

📘 Do I Really Have to File Form 1065 for My LLC? — Practical Partnership Tax Guide (2025)

Many new business owners ask the same question every tax season:
“My LLC has more than one owner — do we really have to file Form 1065?”
For U.S. partnerships and multi-member LLCs, Form 1065 is the core information return that tells the IRS how much income, deduction, and credit should flow through to each partner.

1️⃣ What is Form 1065?

Form 1065, U.S. Return of Partnership Income, is an annual information return filed by partnerships.
The partnership itself generally doesn’t pay federal income tax. Instead, it “passes through” income and
deductions to the partners, who report everything on their own returns.
Form 1065 is where the business reports its overall income, expenses, credits, and other items so that the IRS
can see what should be allocated to each partner.

2️⃣ Who actually has to file it?

You’re usually required to file Form 1065 if:

• ✔ You operate a business as a partnership under state law.
• ✔ You have a multi-member LLC that is treated as a partnership for federal tax purposes.
• ✔ The entity existed during the year, even if there was little or no activity.
• ✔ You have foreign partners or international items that may trigger extra schedules (K-2/K-3).

A single-member LLC is normally disregarded for federal tax purposes and files on
Schedule C, E, or F with the owner’s Form 1040 instead of filing Form 1065.

3️⃣ How does Schedule K-1 work?

After you complete Form 1065, the partnership must prepare a separate
Schedule K-1 (Form 1065) for each partner.
The K-1 shows that partner’s share of:

• 💼 Ordinary business income (or loss)
• 🏠 Rental income, interest, dividends, capital gains
• 🧾 Deductions, credits, Section 179, etc.

Each partner then uses that K-1 to report items on their own Form 1040 (usually on Schedule E).
If the partnership files late or doesn’t file correctly, partners may not receive their K-1 on time —
which can delay their personal returns and create penalties.

4️⃣ Deadlines for 2025 (and what to expect for 2026)

• 📅 Original due date for 2024 calendar-year partnerships: March 17, 2025
  (March 15 falls on a Saturday, so the deadline moves to the next business day.)
• ⏳ Extended due date: September 15, 2025, if you file Form 7004 on time.

For the 2025 tax year (filed in 2026), the general rule in the tax code is that partnership returns are due
on the 15th day of the 3rd month after year-end.
For a calendar-year partnership, that date falls on March 15, 2026, which is a Sunday, so the due date
will move to Monday, March 16, 2026 under the standard “weekend/holiday” rule.
Always double-check that year’s Instructions for Form 1065 or IRS tax calendar before filing.

5️⃣ A simple numbers example

6️⃣ Quick FAQ for busy partners

Q1. We had no revenue this year. Do we still need to file Form 1065?
In most cases, yes. If the partnership or multi-member LLC legally existed during the year,
the IRS still expects an information return, even with little or no activity.

Q2. My spouse and I own a two-member LLC. Is Form 1065 always required?
Often yes, because a two-member LLC is generally treated as a partnership.
However, in some community-property situations a “qualified joint venture” or single-member treatment may be
possible. This is very fact-specific, so it’s wise to review state law and IRS guidance with a tax professional.

Q3. What happens if we file Form 1065 late?
Late-filed partnership returns can trigger a monthly penalty per partner until the return is filed.
On top of that, partners may receive their K-1s late, which can ripple into their personal filing deadlines.
It’s much cheaper to file on time or request an extension.

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