Unveiling the Power of Passthrough LLCs A Guide to IRS Compliance and Tax Efficiency

By default, an LLC with a single member or owner is considered a “disregarded entity” for tax purposes by the Internal Revenue Service (IRS) ... The IRS treats LLCs with more than one owner ("multi-member LLCs") as partnerships by default. As explained below, an LLC can elect to be taxed ... The Internal Revenue Service (IRS) usually treats an LLC as a pass-through entity for federal tax purposes. Pass-through taxation means that the business's ... The so-called 199A (named for the relevant IRS code section) or “qualified business income” deduction effectively reduces the top marginal tax rate on ... A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a ... Internal Revenue Bulletin Code Section: Section 1362 -- S Corporation Elections; Section 1366 -- S Corp. Passthrough; Section 1367 -- Basis ... Payroll taxes are paid on a “pay-as-you-go” schedule determined by the IRS ... pass-through entities such as an LLC or S corp. The QBI deduction ... owner of the LLC is an individual, the LLC's in- come and expenses would be ... credits of the corporation “pass through” to the members. Corporations ... Pass-through entity tax (PTET) ... This includes any taxes paid by an LLC treated as a partnership or S corporation for New York State tax ... As such, a multi-member LLC is a pass-through entity for tax purposes. That ... IRS Form 2553 or as a C-Corporation by filing IRS Form 8832. Choosing S ...