“Thank you Nevada123, for your commitment and your professionalism. You made my experience with your process a smooth one. Your consultants are knowledgeable and patient. They have helped me tremendously to understand and learn. Their advice was genuine and right on point. I intensely researched, looking into other companies and their websites. Your site was well put together and informative. It was all the small things that made my choice as easy as 123 in choosing you guys. Sincerely thank you again.”
- Dan, New York
Home > Learning Center > Business Taxation Explained > LLC Taxation Tutorial
Search:   
Category jump:
Business Taxation Explained  
LLC Taxation Tutorial  
LLC Taxation Options - 4 types of possible taxation  

The Nevada Limited-Liability Company, or LLC, has quickly become one of the most popular entities in the United States. Once seen as a daring corporate hybrid, the LLC is now praised for its organizational flexibility and innovation.

In 1996 the IRS resolved all the confusion and "grey areas" of LLC Taxation. The IRS clarified 4 types of possible taxation, as well as the default status for the taxation categories:

1. A "Partnership" (Flow thru taxation) if it has two or more members. (Default Status)
2. "Disregarded as an entity seperate from its owner" (Flow thru taxation) if it has a single owner (Default Status)
3. "C-Corporation", If an election is made on form 8832. (Elected Status)
4. "S-Corporation". If an election is made on form 2553. (Flow thru taxation) (Elected Status)
(Click image to view)
This website is operated by Nevada Corporation Services Ltd, a Nevada Limited Liability Company. Nevada Corporation Services Ltd provides business incorporating services. The information contained in this site is believed to be accurate and is provided with the understanding that the author and publisher is not engaged in rendering legal or accounting services or advice. The entire content of this site is copyrighted © 2000-2011. Privacy & Legal