LLC Taxation Explained
Formation Methods: Cost vs. Time Comparison
Comparing the true cost of business formation methods
Estimated Total Cost
Time Investment
Why choose the middle path?
DIY Risks Costly Mistakes
Doing it yourself seems cheap, but missing a single compliance step can cost thousands in state fines later.
Attorneys are Expensive
Lawyers charge $200-$400 per hour for paperwork that can be automated accurately and safely.
The Smart Advantage
BookMyLLC provides attorney-level accuracy in a fraction of the time, for a fraction of the cost.
LLC Taxation: A Complete Guide
Understanding LLC taxation is crucial for making informed business decisions. This guide covers the basics of how LLCs are taxed.
Default Taxation
Single-member LLCs are taxed as disregarded entities (report on Schedule C). Multi-member LLCs are taxed as partnerships (file Form 1065). Both enjoy pass-through taxation – profits are only taxed at the individual level.
Electing Alternative Tax Treatment
An LLC can elect to be taxed as an S-Corp (Form 2553) or C-Corp (Form 8832). S-Corp election can reduce self-employment taxes. C-Corp election may be beneficial for reinvesting profits.
The Formation Process
Name Your Business
Perform a quick search to ensure your desired LLC name is available in your state.
Name Your Business
Perform a quick search to ensure your desired LLC name is available in your state.
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We File the Paperwork
Our experts draft and file the Articles of Organization with the Secretary of State.
We File the Paperwork
Our experts draft and file the Articles of Organization with the Secretary of State.
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