What are the Penalties for Late Filing for a Multi Member LLC?

Modified on Tue, 20 Dec 2022 at 02:18 PM

The Limited Liability Company (“LLC”) is the most popular type of incorporated legal entity used by entrepreneurs. When you have more than one member or owner in the LLC, then it is automatically treated as a “partnership” by the IRS. 

You are required to file a 1065 Partnership Tax Return for any LLC that has more than one member or owner, even if you made no money or lost money. The IRS always requires you to file a tax return, when you have more than one member or owner in the LLC.

Failure to file the 1065 Partnership Tax Return or for an extension by the filing deadline, usually March 15th, means that the IRS will charge a late filing penalty. The late filing penalty for a 1065 Partnership Tax Return is $195 dollars per partner and month (up to 12 months). The IRS defines a month as “any part of a month.” This means that a return that is filed one day late is considered late for the entire month.

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