2006-09-21 01:42:24 · 3 answers · asked by BanksBorne 1 in Business & Finance ➔ Taxes ➔ United States
A complete answer would take dozens of paragraphs. I took a 6 week class to learn the differences...I suggest you do something similar. The other answers are partially correct. What they fail to mention is that LLCs can be sub-classified as a sole proprietorship, partnership, or corporation, although most choose partnerships. So, the real question may be what is the difference in taxation between a partnership and a S-corp. Just as important is what are the other differences. If you focus on taxes, you'll miss the big picture. S-corps generally require a lot more paperwork and due diligence including shareholders meetings and minutes...even if there is only one shareholder. Please research this in detail before jumping in.
2006-09-22 11:34:20 · answer #1 · answered by TaxMan 5 · 0⤊ 0⤋
LLC is taxed as a partnership, which means you will receive a K-1 and pay taxes on the earnings at an individual level.
You also receive a K-1 from an S-Corp and pay taxes on the earnings at an individual level.
2006-09-21 04:04:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
LLC is taxed as a partnership.
2006-09-21 02:45:12 · answer #3 · answered by Einstein 5 · 1⤊ 0⤋