Vidhu Duggal & Co....
"Demystifying Taxation of LLCs in the US: Rules and Benefits"
Taxation of LLC in US

14 Aug, 2023

By Vidhu

326 Likes

Taxation of LLC in US

An LLC may opt to be taxed in the following ways in US:

  • Disregarded Entity- LLC with multiple members are considered as pass-through entities. Members will have to pay tax on their individual share of profits in LLC. LLC is not liable to pay taxes.
  • C Corporation- An LLC may choose to be taxed as C Corporation by filing Form 8832 with IRS. C Corporation shall be liable to pay tax & file Form 1120 with IRS to file taxes in US.
  • S Corporation- An LLC may choose to be taxed as S Corporation by filing Form 2553 with IRS. Under S Corporation, members are liable to pay taxes in proportion to their share in LLC. Corporation shall be liable to pay tax & file Form 1120S with IRS to file taxes in US.
  • Partnership- A domestic LLC with at least 2 members can choose to tax as partnership for federal tax purposes.

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