Another interesting note: In some cases LLCs can be taxed as corporations (and therefore subject to double taxation), if the founders don't file the appropriate form.
Just to be safe, if you're forming an LLC, you want to file form 8832 and elect to be classified as a partnership (if there's more than one partner), or "disregarded as a separate entity" (if you're all alone). DO NOT elect to be treated as a corporation - unless you want to be taxed as such.
Just to be safe, if you're forming an LLC, you want to file form 8832 and elect to be classified as a partnership (if there's more than one partner), or "disregarded as a separate entity" (if you're all alone). DO NOT elect to be treated as a corporation - unless you want to be taxed as such.
Check-the-box regulations:
- http://www.llcweb.com/struc.htm
- http://www.irs.gov/irm/part4/ch47s05.html#d0e501936
- Form 8832: http://www.irs.gov/pub/irs-pdf/f8832.pdf