IRS Form 1065 (Partnership Return)
The federal partnership return filed by multi-member LLCs treated as partnerships for tax purposes.
Definition
Form 1065 is the US federal partnership tax return. Multi-member LLCs that have not elected C-Corp taxation are treated as partnerships by default and file Form 1065 each year. The form reports partnership income, deductions, and credits, and allocates each partner's share via Schedule K-1.
Context
Multi-member LLCs file Form 1065 instead of Form 5472. Foreign-partner withholding (Form 8804/8805) may apply for non-resident members.
Example
A two-member Delaware LLC with members in Pakistan and India files Form 1065 each year. Each member receives a Schedule K-1 with their allocated share of LLC income.
Common pitfalls
- Multi-member structure requires partnership-tax expertise; CPA fees are higher than single-member LLC.
- Foreign-partner withholding obligations under Form 8804/8805 add complexity.