Limited Liability Companies (LLC) have a unique tax treatment within the tax code. This is because they are a hybrid between both Corporation and Partnership law.
As a result, they have many cross-over benefits. An LLC will default for tax purposes to either a sole proprietor or partnership, based upon the number of owners it has. However, regardless of the number of owners an LLC can elect to be taxed as a (C) Corporation by filing form 8832 with the IRS, or form 2553 to be taxed as an (S) Corporation.
In the following 2 minute video, Scott shows you how LLC’s are taxed and what might be right for you.
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