@AeroTwin7 wrote:
Hi, what makes a business "Incorporated" for IRS tax purposes.
I have a LLC registered in state of Georgia, never file appropriate forms with the IRS to acknowledge my GA state incorporation - thus my taxes are always file a sole proprietor (schedule C).
SO, For Federal tax purposes - I'm a sole proprietor and not considered incorporated?
The IRS does not recognize that LLCs have a special status under tax law, since they are creations of state law rather than federal law. A corporation, for tax purposes, means an S-corporation or C-corporation. An LLC is a Limited Liability Company, not a corporation.
For federal tax purposes, an LLC is a sole proprietorship, or a partnership if it has more than one member (special rules apply if there are exactly 2 members who are spouses living in a community property state, but in all other cases, an LLC with more than one member is a partnership.)
An LLC can file a special form with the IRS to be taxed as if it was an S-corp, but this has a number of potential problems and should not be done without competent legal and accounting help. Without this form, a single member LLC is a sole proprietorship and a disregarded entity and will file a schedule C.
