Should an two member LLC file as a partnership or and S-Corp? We are a two person LLC in California filing business taxes for the first time.

[lularoerachjess]

We have heard differing opinions about the best way to file federally.

[TaxGuyBill · Accepted solution]

If the LLC has not filed Form 2553 to make an election to be taxed as a S-corporation, you don't really have a choice.  The Multi-Member LLC is taxed as a Partnership.

As to whether or not it may be advantageous to make that election to be taxed as a S-corporation, that is something you should sit down with an tax professional (experienced with both Partnerships and S-corporations) so they can analyze the ENTIRE situation.