In general, an LLC—which stands for Limited Liability Company— must file a tax return, even if it makes $0 or operates at a loss. However, there are different rules depending on how the LLC is classified.

  • Single-member LLC (sole proprietorship): Must file a tax return if it has any income, regardless of profit, and/or if it has deductible expenses.
  • Multi-member LLC: Must file a tax return if it has any income or deductible expenses.
  • LLC electing S Corporation status: Must file a tax return if it has any business activity.
  • LLC electing C Corporation status: Must file a tax return if it has income or is operating, even if it is doing so at a loss.

Filing your tax return as an LLC can be beneficial, but complicated. The good news is that you don’t have to do it alone. Make sure you maximize your savings and get every credit and deduction you’re owed. Book your appointment today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 08, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.