![]() LLCs with one owner have the option of being taxes as a disregarded entity, the same way a sole proprietorship is taxed, or as a corporation. Form 8832 is a form that allows LLCs to elect whether they would like to be taxed like a disregarded entity, a partnership or a corporation. How the IRS, recognizes your LLC depends on whether or not you have filed an IRS Form 8832 with the IRS. The first step in filing your LLC’s small business taxes is to determine how the IRS views your LLC. Determining How the IRS Recognizes Your LLC This treatment is for tax purposes only and does not impact other aspects of the business entity. ![]() However, LLCs can elect to be taxed like a corporation. For tax purposes, an LLC is treated like a sole proprietorship, partnership, or corporation.īy default, the IRS treats LLCs as partnerships or if there is only one owner, as sole proprietorships. LLCs are state created business forms and the IRS does not recognize them as a distinct form of taxable entity. How to file taxes for an LLC depends on whether your LLC is treated as a sole proprietorship, partnership or corporation by the IRS for tax purposes. Advantages of Taxation as a Corporation 8. Determining How the IRS Recognizes Your LLC 3. ![]()
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