If you deposited all your payroll taxes on time, you have until May 12, 2025, to file Form 941 for Q1, 2025. E-file now!
Does LLC Have to File 941?
Find out the answers to commonly asked questions that Limited Liability Company (LLC) may have about 941 filing requirements!
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What is a Limited Liability Company (LLC)?
A Limited Liability Company (LLC) is one of the business classifications in the U.S. that shields its owners from personal liability for the company’s financial losses and debts. Generally, LLCs are hybrid entities that can be classified as partnerships, sole proprietorships, or corporations for federal tax purposes.
If your LLC is treated as a ‘disregarded entity,’ the IRS views you and your business as one for tax purposes. This means that the LLC doesn’t pay federal income taxes directly; instead, you report its income on your personal tax return.
What are the classifications of an LLC?
As previously mentioned, LLCs have several options for how they can be taxed. The choice depends on the size of the business and its goals. Below are the tax classifications available for LLCs:
- Single-Member LLC (Disregarded Entity) - A single-member LLC is treated by the IRS as a ‘disregarded entity,’ meaning the business itself is not taxed separately. Instead, the owner reports the LLC’s income and expenses on their personal income tax return using Form 1040 with Schedule C.
- Multi-Member LLC (Partnership) - A multi-member LLC, with at least two members, is classified as a partnership. The LLC doesn’t pay taxes on its income directly. Instead, profits or losses are passed through to the members and reported on their personal tax returns, typically filed via Form 1065 with Schedule E.
- LLCs Classified as Corporations - LLCs of any size, whether single-member or multi-member, can choose to be taxed as a corporation. Both the LLC and its owners have tax reporting obligations under this classification.
- C Corporation - To elect classification as a C corporation, file Form 8832.
- S Corporation - To elect classification as an S corporation, file Form 2553.
What are the payroll tax filing requirements for LLC?
Just like all the other business classifications, LLCs do have designated payroll filing requirements that they must comply with. LLCs those who pay wages to employees must make sure to withheld and deposit the applicable federal taxes from their paychecks.
In addition, these withheld amounts are required to be reported to the IRS by filing the applicable tax form. While the IRS has established various payroll forms, LLCs are required to file the one that applies to them based on their type, amount of taxes withheld and certain other criteria to ensure compliance.
Does LLC have to file 941?
Generally, any LLC with at least one employee who has paid wages subject to tax withholding (6.2% for Social Security and 1.45% for Medicare) must file Form 941.
Even LLCs with no employees or those who haven't paid wages during the quarter are required by the IRS to report zero taxes on Form 941.
This filing requirement may be communicated when applying for an EIN or through an IRS notice.
Taxes applicable for LLCs with employees:
LLCs can choose to hire employees, but specific tax filing rules apply to single-member LLCs, multi-member LLCs, and corporations.
- If you are a single-member LLC (disregarded entity) with employees, you are required to pay employer taxes such as Social Security, Medicare, and FUTA taxes.
- For multi-member LLCs (partnerships), members must pay FICA and FUTA taxes in addition to self-employment taxes.
- If your LLC is classified as a corporation, you are responsible for paying FUTA and SUTA taxes. While FUTA taxes are consistent across all states, SUTA taxes may vary depending on the state.
Are disregarded entities required to file 941 even if there are no taxes to report?
Yes! If you are a disregarded entity and don't have employees or you haven’t paid any wages to your employees for the quarter, your tax amount automatically becomes zero. However, even if your taxes are zero, the IRS requires you to file Form 941.
When is the deadline to file 941 for your LLC?
To ensure compliance with IRS requirements and avoid unnecessary penalties, Form 941 must be filed before the deadlines. Here are the 941 deadlines for each quarter.
| Quarter | Deadline |
|---|---|
| First quarter (January-March) | April 30 |
| Second Quarter ( April-June) | July 31 |
| Third Quarter (July - September) | October 31 |
| Fourth Quarter (October-December) | January 31 |
What are the other forms LLCs are required to file to report employment taxes?
Here are some of the tax forms that you as an LLC may need to file for reporting the social security, medicare, and unemployment taxes based on your business type or the amount of taxes you withheld.
Do non-profits file Form 940?
If your nonprofit is tax-exempt under a 501(c)(4), 501(c)(6), or some other 501(c) code section, your are not exempt from FUTA, and required to file Form 940.
Meet your LLC's payroll tax filings with TaxBandits?
TaxBandits offers a simple and effective solution that enables you to efficiently manage the 941 filings for your LLC.
Our intuitive software tailored with various time-saving features makes your 941 e-filing easy, secure, and accurate. If you are a CPA or other tax professional who manage 941 filing for multiple clients, use our bulk upload template to simplify your filing.
Also, our software supports zero reporting and comprises built-in error checks, enhanced security, and numerous other features that lets you ensure 941 compliance with complete ease.