LLCs taxed as Corporations. Law Offices of Kiritsis & Associates 212 922 0005
The complete dichotomy between federal tax classification and State legal entity law, has allowed for LLCs to be allowed to elect corporate tax treatment.
Broad Overview.There is no federal incorporation statute in the United States. When a Limited Liability Company elects corporate tax treatment classification, then by default it would be treated as a C Corporation.
Specific Issues.LLC tax regulations are all over the place within the 10,000+ pages federal tax code. Although, LLCs choosing corporate tax treatment would initially be designated as C Corporation for federal income tax purposes, it is possible that they can subsequently make an S Corporation tax treatment classification.