A 1065 Partnership Return is an informational tax return. Meaning, the form is just reporting information about the LLC’s income, and there’s no money due with this form.
Multi-Member LLCs taxed in their default status must file Form 1065 every year to tell the IRS how much money the LLC made, and how the business income is split between the business owners.
Then, the IRS sends Schedule K-1s to the LLC (or the LLC’s accountant).
Schedule K-1 shows the individual Members’ portion of the business income. And Members report their portion of the LLC income listed on K-1 using their personal tax return (Form 1040).
Form 1065 is submitted to the IRS by March 15, every year.
This makes sure that each Member of the Multi-Member LLC receives their K-1 early enough to include their portion of the LLC income on their personal 1040 tax returns (due by April 15).
Note: All Members must report their portion of that year’s profits on their annual personal tax return even if they don’t take money out of the business.
This is because the IRS doesn’t care how much money you took out of the business. They want to know how much business income you’re entitled to for that tax year, so they can tax it.