Which of the following entities reports its income on Form 1065?

Answer options:

C Corporation

S Corporation

Limited Liability Company (LLC) with 2 members (no elections made)

Sole Proprietorship

How to approach this question

Identify the default tax form for a multi-member LLC (Partnership).

Full Answer

C.Limited Liability Company (LLC) with 2 members (no elections made)✓ Correct

A multi-member LLC is taxed as a partnership by default and files Form 1065. A single-member LLC is a disregarded entity (Schedule C). C Corps file 1120. S Corps file 1120S.

Common mistakes

Thinking LLCs have their own specific tax form (they don't; they use Partnership or Corp forms).

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