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)