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Taxation Options

Taxation Options Print
Several options for maximum benefit

A major benefit of the LLC structure is that it has multiple options to select for its taxation.  This allows members to be very strategic in selecting the best tax method for their business.  Be sure to discuss your options with your accountant!

  • 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.

The chart below shows the same information:

Taxation OptionsSingle

File as:   Sole ProprietorX**
File as:   PartnershipX**
File as:   C-CorporationXX
File as:    S-CorporationXX

**Default Classification: If the LLC does not make any tax elections with the IRS, then the default classification noted in the chart will apply.