What kind of return does an LLC file?

An LLC can file its taxes in one of two ways.  When the LLC is formed, the members choose how the LLC is to be taxed.  It can be taxed either as an S-Corporation or as a Partnership.  In the first case the LLC will file a Form 1120 tax return and will issue the members a Form K-1, passing the profits or losses to them to file on their personal returns.  If the members choose to be taxed as a Partnership, they will file a partnership return and again, the LLC will issue the members a Form K-1, passing the profits or losses to them to file on their personal returns.  If a single member LLC chooses to be treated as a partnership, the member will report the LLC‘s taxes on a Schedule C on his personal tax return.  There are advantages and disadvantages to both, and the members should make this decision with the help of a professional.