. Because of this, some LLCs choose to be taxed as S-Corporations, allowing them to retain the flexibility of an LLC and the pass-through tax structure, without the members of the LLC having to pay nearly double in self-employment tax....
Benefits of electing S Corp status One reason an LLC might opt for S corporation status is that it can save the owners money on self-employment taxes by splitting income into two groups, salary and distribution. The IRS only requires you to pay the 15.3% self-employment on your salary and...
State true or false and justify your answer: A limited liability company (LLC) is taxed like a partnership but provides limited liability for its owners, similar to a corporation. Unlimited liability is faced by the owners of: A. corporations. B. partnerships and corporations....