LLCs get to choose their tax treatment. They can be taxed as a pass-through entity (e.g. like an S corporation) or they can be taxed like a C corporation. Pass-

LLCs get to choose their tax treatment. They can be taxed as a pass-through entity (e.g. like an S corporation) or they can be taxed like a C corporation. Pass-through taxation is often cheaper because LLCs are often used to wrap limited liability around a partnership, sole proprietorship or to create a simple wholly owned subsidiary separate from its parent.