@TerryLouKy wrote:
The remaining profits are distributed to the owner, as if the LLC is dissolved at the end of each year. These are not dividends.
The LLC, with an election to be treated as a corporation for federal income tax purposes, is not treated as being dissolved at the end of each year. The language you posted from Form 8332 (in bold) is applicable only to the time when the election is made and not in subsequent tax years.
Net profits distributed from C corporations to shareholders are most definitely dividends for federal income tax purposes.
