Form 1065 for LLCs: Who Files, Due Date, K-1s, Step by Step

Form 1065 for LLCs is the federal partnership return. It's an information return: it reports the business's income and deductions and splits them among the owners, but the LLC itself doesn't pay federal income tax. This guide covers which LLCs file it, the 2027 deadlines, how K-1s work and a step-by-step walkthrough of tax Form 1065.

Who files Form 1065 for LLCs? (the multi-member LLC tax return)

The IRS says every domestic partnership must file Form 1065 unless it had no income and no deductible expenses or credits for the year. LLCs follow the same rule based on how they're classified for tax:

So the usual answer to "who files Form 1065" is a multi-member LLC that never made a tax election. If you're not sure how your LLC is classified, check your EIN paperwork or any Form 8832 or 2553 you filed before you start.

Form 1065 due date 2027 (for 2026 returns)

• March 15, 2027: the regular due date for calendar-year partnerships (the 15th day of the 3rd month after the year ends).
• September 15, 2027: the extended due date, if you file Form 7004 by March 15. The extension is generally 6 months. It extends the time to file, not to pay.
• New Jersey: the NJ-1065 is due on the 15th day of the 4th month, so April 15, 2027 for calendar 2026.

Fiscal-year partnerships use the same "15th day of the 3rd month" rule from their year-end.

Form 1065 late filing penalty

Because the LLC usually owes no tax, owners sometimes assume a late Form 1065 doesn't matter. It does. For returns required to be filed in 2027, the penalty is $260 per partner for each month or part of a month the return is late, up to 12 months (Rev. Proc. 2025-32). A two-member LLC that files four months late could owe $2,080. A full year late, $6,240.

There are separate penalties for late or incorrect Schedules K-1, so send them on time and make sure each one matches the return.

Schedule K-1 (Form 1065): what each member gets

Schedule K shows the partnership's totals. Schedule K-1 shows each member's share of the same items: ordinary business income, guaranteed payments, interest, dividends, capital gains, deductions and credits. Members report those amounts on their own returns, generally on Schedule E of Form 1040, and many also file Schedule SE for self-employment tax.

• Members aren't employees. The IRS says partners shouldn't receive a W-2. Payments to members for their work are generally reported as guaranteed payments.
• Shares follow your operating agreement. Make sure the percentages on the K-1s match it.
• Timing: K-1s go to members by the return's due date, including extensions. Your partners can't finish their own returns without them.

How to fill out Form 1065, step by step

1. Confirm the classification. Two or more members and no corporate or S corporation election means Form 1065.
2. Close the books for 2026. Reconcile every bank and credit card account, then produce a year-end profit and loss statement and balance sheet. Most errors on Form 1065 start here.
3. Page 1: income and deductions. Enter gross receipts, cost of goods sold and deductions such as guaranteed payments, rent, taxes and depreciation. Line 23 is ordinary business income or loss.
4. Schedule B: the yes/no questions. These cover your accounting method, ownership and other details.
5. Schedule K: partnership totals. Ordinary income from line 23 flows here along with separately stated items.
6. A Schedule K-1 for each member. One for every person who was a member at any time during the year.
7. Schedules L, M-1 and M-2 (balance sheet, book-to-tax reconciliation and capital accounts). Smaller LLCs can skip them if they meet all four tests in Schedule B, question 4: total receipts under $250,000, total assets under $1 million, K-1s filed and furnished on time, and no Schedule M-3 required.
8. Check whether Schedules K-2 and K-3 apply. These cover international tax items. Many purely domestic LLCs don't need them, but confirm using the instructions.
9. File and send K-1s. Partnerships that file 10 or more returns of any type during the year must e-file. So must partnerships with more than 100 partners.
10. File your state return. In New Jersey, that's the NJ-1065.

New Jersey: the NJ-1065 partnership return and filing fee

Partnerships with New Jersey income, or with a New Jersey resident partner, file the NJ-1065. Under the 2025 instructions:

• It's due on the 15th day of the 4th month after the year ends.
• Partnerships with more than two owners pay a filing fee of $150 per owner, capped at $250,000.
• An automatic five-month extension is available if you have a federal extension. It doesn't extend the time to pay the fee.
• Partnerships with 10 or more partners must file electronically.
• Partnerships that calculate tax for nonresident partners also file the NJ-CBT-1065.

Merchant Financial Advisory (MFA), an accounting, tax and business solutions provider in Princeton, New Jersey, helps individuals and small and mid-sized businesses in New Jersey, New York and nationwide with partnership returns and year-end books. See our business tax services, our Form 1099 guide and our 2027 tax calendar, or book a call below.