LLC Taxation

LLCs enjoy single taxation at a business level. Be sure you know the basics of how they are taxed both with and without additional officers, especially if you are acting as your own accountant and bookkeeper! As an LLC owner, you’ll be able to choose which entity of business in which you will be taxed under.

How are LLCs taxed?

Another major benefit of forming an LLC is that it is considered a “pass-through entity” in terms of taxation. That means that all of its profits pass directly through the LLC’s owners (yourself and anyone else of whom you may have designated as an officer). Therefore, the owners, whether it be yourself and your officers, or just yourself, will pay taxes only once at an individual rate.

For example, when the time comes to do your LLC’s taxes, your LLC will not be taxed at the company level, but the individual salaries that are paid to the LLCs constituents will be taxed.

In addition, LLCs have the unique opportunity to choose to be taxed as several different entities, including sole proprietorships, partnerships, S-corporations or C-corporations.

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