IRS

The Internal Revenue Service, or IRS, is the federal agency responsible for administering U.S. tax laws. LLCs interact with the IRS when applying for an EIN, filing federal tax returns, and making estimated tax payments. The IRS determines how your LLC will be taxed—by default as a pass-through entity, but with the option to elect S-Corp or C-Corp taxation. Keeping accurate records and complying with IRS rules is critical to avoid penalties. Most business owners deal with the IRS annually at minimum.