Definition:
Form 1065 is the U.S. federal tax return used by partnerships, including Multi-Member LLCs (MMLLCs), to report the business’s income, gains, losses, deductions, and other financial information to the IRS. The partnership itself does not pay income tax instead, profits or losses are “passed through” to the individual partners.
Along with Form 1065, the business must also file:
- Schedule K-1 for each partner/member, showing their share of the income, deductions, and credits
- Any applicable supporting schedules or statements
Even if the partnership had no income or activity, Form 1065 is generally still required to maintain compliance.
Why is it important?
Filing Form 1065 ensures that all partners report their allocated income correctly on their personal or business tax returns. It also provides transparency to the IRS regarding how partnership income is distributed.
Who is it for?
- Multi-Member LLCs treated as partnerships for tax purposes
- General or limited partnerships with U.S. or foreign members
- Foreign entrepreneurs who jointly own a U.S. LLC with one or more partners
