A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company.
Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Single-member LLCs file Schedule C, which is part of their personal tax return (Form 1040).
Specifically, a domestic LLC with at least two members is classified as a partnership (files Form 1065) for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation (files Form 1120 or 1120-S).
For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation (files Form 1120 or 1120-S). However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity. @susanmcturbo
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
