How LLC Income Is Taxed (Federal Income Tax Guide)

(ad) Start your LLC with Bizee: https://startupwise.com/bizee/ ^Start for $0 + state fees In this video, I go over how the IRS actually treats LLC income at the federal level in 2026, including the key differences between how single-member and multi-member LLCs are taxed, how pass-through taxation works in practice, and what your real tax obligations look like depending on how your LLC is structured. Most LLC owners find out how this works at tax time when it's already too late to plan around it, and this video is built to fix that. Our favorite business must-haves: 💳 Best business credit cards: https://startupwise.com/creditcards 🏦 Novo (best business bank): https://startupwise.com/novo/ 🖥️ Best AI website builder (/month using code STARTUPWISE): https://startupwise.com/hostinger/ ⚙️ Northwest (best LLC formation service): https://startupwise.com/northwestLLC/ 💰 Payroll with Gusto (get 2 months free!): https://startupwise.com/gusto/ 👨‍💼 Best overseas staffing agency (save 80% on payroll): https://paired.so/startupwise Be sure to watch this video until the end because I'll walk you through real numbers so you can see what your effective tax rate looks like as an LLC owner, explain how electing to be taxed as an S Corp or C Corp changes your situation, and give you the clearest possible picture of how LLC income flows through to your personal tax return. Understanding this one topic can save you thousands in unnecessary payments. If you own an LLC and you're not sure how your income actually gets taxed, this video explains it all in plain language. You'll understand pass-through taxation, self-employment tax, and how your LLC's tax classification affects what you owe each year. This is the federal income tax guide every LLC owner in 2026 needs to watch before filing. If you found this video helpful, be sure to check out our other videos on: LLC Write-Offs That Increase Your Tax Refund: https://youtu.be/NSjUJ7MOD0s How to Track LLC Expenses to Maximize Tax Deductions: https://youtu.be/BUn21NHUA5g Request New Videos Here: https://forms.gle/k9TtfauggkEpAWNQA More tutorials on our website: https://www.startupwise.com Thanks for watching! I hope you have a wonderful day! – Erin #Business #Finance #Entrepreneurship Timeline: 0:00 - Introduction  0:56 - LLC Is a Legal Structure, Not a Tax Status  3:08 - Single-Member LLC  4:30 - Multi-Member LLC  6:47 - LLC Taxed as a C Corporation  8:05 - How LLC Income Actually Affects You  10:07 - Getting Started with Bizee  11:35 - Conclusion Disclaimer: Some of the links above may be affiliate links, meaning I may receive a small commission if you click on them. The commission is paid by the retailers at no cost to you, and this helps to support our channel and keep our videos free. Thank you! All info from our videos is compiled from online sources and our own experience, and we encourage you to do your due diligence. We appreciate your viewership! In addition, we are not financial advisors. StartupWise does not provide tax, legal, or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your due diligence before making any financial decisions.