When an LLC company is formed, the Internal Revenue Code gives it a default partnership tax structure. What this means is that the profits and losses of the LLC business is passed through to the members at the end of each year.
Because most members of LLC company businesses are individuals, the year end is typically the end of each calendar year.
After the end of the calendar year, the LLC will complete its own internal books for accounting purposes and then prepare K-1 forms for each member. The K-1 will tell each member what his/her proportion of the profits or losses are (this will be based on ownership and the specific tax allocation provisions for the LLC).
The LLC will actually file an information return with the IRS but it does not pay any taxes. Each member will take the information on his/her K-1 and incorporate it into the personal return which is usually due in April of the following year (extensions are available).
So, in answer to when an LLC company pays taxes, the LLC itself does not pay taxes, it reports the company profits and allocates it to the members.
Having said all of this, an LLC company also has the option of being taxed as a C corporation if it deems a corporation tax structure more beneficial. In these cases, the LLC will pay taxes as a separate entity and will follow the rules applicable to corporations.
