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Just to clarify- if you are incorporating as an S-Corp or C-Corp you do pay taxes off the top, but if you file as an LLC you have pass-through taxation, meaning
by dkrich 12y ago
Just to clarify- if you are incorporating as an S-Corp or C-Corp you do pay taxes off the top, but if you file as an LLC you have pass-through taxation, meaning that you only pay tax on your income, the business doesn't have to pay taxes on top of that.
- adventured 12y agoFurther clarification: that depends on your election as an LLC. You can elect to be taxed as a corporation as an LLC, in which case the taxation will not be pass-through as a disregarded entity or partnership, and you'll need to file the normal 1120 corporate return. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/LLC-Filing-as-a-Corporation-or-Partnership http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ...