Category:LLC

From TaxAlmanac

Overview

A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. Unlike a partnership, none of the members of an LLC are personally liable for its debts. An LLC may be classified for Federal income tax purposes as if it were a sole-proprietorship (referred to as an entity to be disregarded as separate from its owner), a partnership, or a corporation. If the LLC has only one owner, it will automatically be treated as if it were a sole-proprietorship (referred to as an entity to be disregarded as separate from its owner), unless an election is made to be treated as a corporation. If the LLC has two or more owners, it will automatically be considered to be a partnership unless an election is made to be treated as a corporation. If the LLC does not elect its classification, a default classification of partnership (multi-member LLC) or disregarded entity (taxed as if it were a sole proprietorship) will apply. The election referred to is made using Form 8832, Entity Classification Election. If a taxpayer does not file Form 8832, a default classification will apply.

Links

• SMLLC Businesses with Employees - Single Member Limited Liability Companies
• Publication 3402 Tax Issues for Limited Liability Companies
• Form 8832 Entity Classification Election
• Form SS-4 Application for Employer Identification Number

Additional information on LLCs
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Key discussions

If you're looking for info on the differences between LLCs "checking the box" to be taxed as S corps, and regular S corps, then see:

• Discussion:Difference between LLC filing as S-corp and S-Corp
• Discussion:Issues w/ LLC changing to S corp taxation
• Discussion:"Check the Box" LLC argument revisited

If you're interested in questions about 8832 vs 2553, implications of using 2553, etc., Smokeytax's May 18, 2008 post here has a nice recap:

• Discussion:LLC vs. S Corp discussion only
• (That discussion also has some gems on check-the-box LLCs vs S corps, but it wanders around a bit between the gems, so read some of the other discussions first (see above) if that's your primary interest)

Categorized discussions (at bottom of page)