Partnerships, multi-member LLCs, and S-Corporations must file a tax return every year to report income, deductions, profits, and losses for the business.
Because these organizations are flow-through entities, the owners, partners, and shareholders pay taxes on the income. If you’re a general partner, Form 1065 needs to be filed for your business. If you’re an S-Corp, Form 1120S must be filed. LLCs are unique in that they choose how they want to be taxed, whether as a sole proprietorship, partnership, S-Corp, or C-Corp.
Sole proprietorships report income as a self-employed individual, so business tax forms aren’t required annually, and C-Corporations are taxed as separate entities and file Form 1120.
Once the business forms are filed for a partnership, LLC, or an S-Corp, each owner or partner receives Schedule K-1, which details their share of income to report on their personal tax return. Independent contractors and employees of the business itself will also receive the forms needed to fill out their personal tax returns.