A limited liability company (LLC) is treated as a 'pass-through' or 'disregarded' entity for tax purposes. This means your LLC does not pay taxes itself, instead all of the LLC's profits or losses are 'passed through' directly to the personal tax returns of the owners of the LLC and taxed there. Even though your LLC is a pass-through entity, it will still need to file some tax forms. If you run an LLC yourself, you will need to file a 1040 with the appropriate business and self-employment schedules. If you run an LLC with others, you will need to file a 1065 partnership return, together with a 1040 with the appropriate schedules. If you have opted to be taxed as an S Corporation, you will need to file an 1120-S S Corporation tax return, together with a 1040 with the appropriate schedules.

S Corporation Tax Filing

If you set up your company to be an S Corporation, or elect to have your LLC file taxes as an S Corporation, this may provide you with some tax advantages to reduce your self-employment tax liability. S Corporations, like LLCs, do not have to pay corporate income tax. Instead, the company's income gets passed through to the owners and is reported on the company owners' personal income tax returns. The tax treatment of S Corporations is different from LLCs, in that the company owners can choose to pay the members a salary (subject to payroll taxes) and also assign additional income to be treated as a distribution, which is not subject to payroll or self-employment taxes. This gives the owners some flexibility in how they pay themselves from the company's profits, as well as reducing payroll taxes. Filing as an S Corporation requires you to file Form 2553: Entity Classification Election. You will also need to file an 1120-S: U.S. Income Tax Return for an S Corporation or an 1120-A, the short version of this form. Review how the S Corporation can considerably reduce your self-employment tax obligations with our S Corporation Tax Calculator.

C Corporation Tax Filing

A C Corporation is required to pay corporate income tax. Unlike an LLC or S Corporation, this type of business structure is not a pass-through entity. This means your C Corporation will have to pay taxes on the business's income, and then the business owners will also have to pay personal income tax upon the taxable dividends paid to the owners by the business. This is known as 'double taxation' because your company has to pay corporate income tax first, and then you as the business owner have to pay personal income tax. C Corporations are required to file Form 1120: Corporation Income Tax Return. The owners must report their income from the C Corporation (salary and any dividends) on their personal tax returns. As the owner of a C Corporation, if you pay yourself a salary, you will also have to pay personal income taxes and other withholdings like payroll tax, based on your salary.

Small Business Accounting & Bookkeeping Services

Keeping on Top of Your Finances Takes a Lot of Effort

Understanding the tax requirements of your business entity is complex and requires a lot of dedicated time. Trying to do everything yourself can be mentally draining — and financially draining, too when it comes to taxes and bookkeeping!

Take the Hassle Out of Bookkeeping and Accounting

Get accountant services and solutions tailored to suit your business's needs. With Incfile, there are no high fees, mountains of paperwork, or administrative headaches. Get expert knowledge, hands-on support, and peace of mind to make your life easier.

The Benefits of Incfile's Accounting & Bookkeeping Services

Our business bookkeeping and accounting service take the worry out of managing your tax and finances while saving you up to 50 hours and $2,500+ per year! Check out the host of other great benefits below.

Stress-Free Tax Filing — Yes, It Is Possible!

Get your business and personal taxes filed for you and get advice on enhancing your potential yearly savings.
Compliance Assistance Keeps the IRS at Bay

Entrust your bookkeeping, taxes, and accounting to dedicated specialists. Minimize chances of IRS audits and fees.
Financial Reporting, Online Tools, & Resources

Access your mobile-friendly financial reports and tools or easily contact your accountant or bookkeeper anytime, anywhere.
Monthly or Quarterly Bookkeeping

Monitor business performance. Turn accounting figures into actionable information via your modern, intuitive dashboard.
Link Up to Four Bank Accounts

Upload receipts to your dashboard to unlock essential business insights and visual profit and loss statements.
Get Advice from Bookkeeping & Tax Pros

Get advice or one-on-one support from dedicated specialists via email, phone, or online chat in your personalized dashboard.

Book Your Free, No Obligation Tax Consultation

In your free 30-minute consult, a specialist accountant will review your finances with you to highlight where you can save money and offer practical advice.

Choose the Package That Suits Your Needs

During your consultation, your accountant will help you determine which package (Starter or Plus) best meets your business's needs.

Start Setting Up Your Dashboard

Your accountant will then guide you through the initial stages of populating your dashboard. Then you'll receive your login details so you can complete the setup.

Paul R.

Year ago

“Was able to create my business in less than 30 minutes! Incredibly easy, intuitive and straight forward. Amazing!”

Carrie S.

Year ago

“Been using incfile for years. Love how easy it is to file and stay current with my LLC filings.”

Darla S.

Year ago

“They literally do almost everything for you, including state annual filing. SO easy to use for first-time business owners.”

How Much Does Your Service Cost?

The Starter Package costs $90 per month and includes:

Quarterly bookkeeping
Business tax return
Personal taxes (for sole proprietorships and single-member LLCs only)
Compliance assistance
Financial reporting
Online tools and resources
Link up to two bank accounts
Accounting advice from our team of experts

The Plus package costs $180 per month. It's a more personalized service and includes the following: Monthly bookkeeping

Business tax return
Personal taxes (any entity type)
Accounting advice from a dedicated bookkeeper and tax pro
Compliance assistance
Financial reporting
Online tools and resources
Link up to four bank accounts
Tax planning sessions with an expert

Are There Any Hidden Costs?

Never! We're all about transparency, and there are no hidden costs associated with our business accounting and bookkeeping service.

How Long Does It Take To Get Setup?

Your free 30-minute tax consultation will help you choose the right package and get set up within your dashboard. After the consult, you're ready to go as soon as you receive your username and password via email.

Do You Have Any Guides or Resources for Getting Started?

Yes! Get detailed information on filing your business taxes and finding the right small business accountant. Learn all about the differences between bookkeeping and accounting and what forms you need for LLC taxes.

Do You Provide Hands-On Support?

Absolutely! If you have questions about our business accounting services or need other support, contact us via your personalized dashboard or use our contact form. We also recommend checking out our top tax filing tips and what forms you'll need to file your LLC taxes.

Once you've signed up for our accounting services, contact your accounting team within your personalized dashboard if you need support regarding your accounting and bookkeeping tools, dashboard, or any financial or tax-related advice.

Stress-Free Accounting and Bookkeeping

Business accounting and bookkeeping services at a low monthly cost so you can focus on what matters.

Keeping on Top of Your Finances Takes a Lot of Effort

Take the Hassle Out of Bookkeeping and Accounting

The Benefits of Incfile's Accounting & Bookkeeping Services

How to Get Access to Affordable Accounting & Bookkeeping

Book Your Free, No Obligation Tax Consultation

Choose the Package That Suits Your Needs

Start Setting Up Your Dashboard

Loved by 1,000,000+ Entrepreneurs Across All 50 States

See What Our Clients Have to Say…

Loved by 1,000,000+ Entrepreneurs Across All 50 States

Stress-Free Accounting and Bookkeeping