Changes

Limited Liability Company (LLC) is an entity formed under state law by filing

'''Limited Liability Company''' (LLC) is an entity formed under [[state law]] by filing

articles of organization as an LLC.  Unlike a partnership, none of the members

[[articles of organization]] as an LLC.  Unlike a [[partnership]], none of the members

of an LLC are personally liable for its debts.  An LLC may be classified for

of an LLC are personally [[liable]] for its [[debt]]s.  An LLC may be classified for

Federal income tax purposes either as a partnership, a corporation, or an

[[Federal income tax]] purposes either as a partnership, a [[corporation]], or an

entity disregarded as an entity separate from its owner by applying the rules

entity disregarded as an entity separate from its owner by applying the rules

in Regulations section 301.7701-3. See Form 8832, Entity Classifi cation

in Regulations section 301.7701-3. See Form 8832, Entity Classification

Election, for more details. (Form 1065 Instructions)

Election, for more details. (Form 1065 Instructions)

Single Member LLC: A single member LLC generally has the following

Single Member LLC: A single member LLC generally has the following

choices:

choices:

(1) File Form 8832 and (if qualified) Form 2553 to be taxed as an Scorporation.

# File Form 8832 and (if qualified) Form 2553 to be taxed as an Scorporation.

(2) File Form 8832 to be taxed as a corporation.

# File Form 8832 to be taxed as a corporation.

(3) Be taxed by default as a disregarded entity. If the member is a person, the

# Be taxed by default as a disregarded entity. If the member is a person, the LLC will be taxed as a sole proprietorship. If the member is a corporation, the LLC will be taxed as a division of the corporation.

LLC will be taxed as a sole proprietorship. If the member is a corporation,

the LLC will be taxed as a division of the corporation.

Multiple Member LLC: A multiple member LLC generally has the following

Multiple Member LLC: A multiple member LLC generally has the following

choices:

choices:

(1) File Form 8832 and (if qualifi ed) Form 2553 to be taxed as an Scorporation.

# File Form 8832 and (if qualified) Form 2553 to be taxed as an Scorporation.

(2) File Form 8832 to be taxed as a corporation.

# File Form 8832 to be taxed as a corporation.

(3) Be taxed (by default) as a partnership.

# Be taxed (by default) as a partnership.

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