| One of the benefits of the LLC is it has multiple options to select for its taxation. This allows the members to be very strategic and work closely with their accountant to select the best tax method for their business. A single member LLC can be taxed as a sole proprietor, a C-Corporation or an S Corporation. A multi member LLC can be taxed as a partnership, a C-Corporation or an S Corporation. If the LLC does not make any tax elections with the IRS, then the default tax classification for a single member LLC will be taxed as a sole proprietor and the default tax classification for a multi member LLC will be taxed as a partnership. Please discuss your options with your accountant to determine which tax structure is best for your business. |
