Simplify Your Business The Power of Passthru for LLCs

An LLC uses what's known as pass-through taxation. This means that the company does not file or pay its own taxes. You may also want to speak with a CPA beforehand to learn if the more complex S-corp tax filing (through IRS Form 1120-S) will actually save you money—as not ... (However, certain estates, trusts, and tax-exempt organizations are also allowed.) S-corporation owners do not pay SECA tax on their profits but are required to ... If a business owns another business, the tax for the owning business passes through. For example, if a corporation owns all or part of an LLC, ... LLCs can opt for S corporation taxation and benefit from tax-free dividend payments by filing Form 2553 with the IRS. An LLC can choose to pay tax as a C ... A pass-through entity files Form 510 to report the pass-through entity's items of income, adjustments, gains, losses, and other required information. These ... You're currently subject to double taxation ... LLCs that opt to be treated as pass-through entities avoid double taxation. Instead of getting ... LLC pass-through income is treated basically the same as sole proprietor income; you might need to pay a higher share of self-employment tax unless you choose ... How do I elect to become an affected business entity that is subject to the pass-through entity tax? 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 ...