Maximize Tax Efficiency for Your LLC A Guide to Passthru

... work around is called the Pass-Through Entity Tax ... You must make this election every year before the 15th of the 3rd ... How do I elect to become an affected business entity that is subject to the pass-through entity tax? All you have to do is "quit" your job and tell your employer to treat you like a independent contractor. Instead of being paid employee wages reported to the ... An LLC uses what's known as pass-through taxation. This means that the company does not file or pay its own taxes. Like the sole proprietorship, LLC partnership taxes pass through the entity to the business owners. You'll file IRS Form 1065 with the IRS on ... LLCs are eligible to be taxed as “pass-through” entities, meaning that profits and losses are not recognized by the LLC itself. While an LLC is not directly responsible for paying income taxes, the owners must still file the appropriate forms with the IRS. Form 1065 must be filed to show ... If you're in a state that doesn't, you'll file taxes differently for federal and state, and that could get complicated. You'll probably want to enlist the help ... The only type of business entity that isn't automatically regarded as a pass-through entity is a C corporation. Every type of LLC or partnership ... For taxable years beginning on or after January 1, 2022, S Corporations and Partnerships may annually make an irrevocable election to pay income tax at the ...