| LLC: Will Mine Be Taxed as a Corporation? |
Mike (ebay marketer) asks:I read that an LLC can elect to be taxed as a corporation instead of as a sole proprietorship. How do I know if I've made this election?
Answer:Mike- The election for an LLC to be taxed as a corporation is made by filing Form 8832 with the IRS. I find it hard to imagine that you could have filed this form without knowing it. As such, your LLC is probably being taxed as a sole proprietorship.
Only exception I can think of: You hired an accountant, and the accountant decided it would save you money to be taxed as a corp. He/she filled out the form for you, and you approved it without really knowing what you were approving.
For More Information, Take a Look at My Related Book
A Testimonial from a reader on Amazon:"A very concise and practical guide to the formation, taxation and legal differences between Sole Proprietorships, Corporations and everything in between. Very easily read with a simplified presentation makes this a great introduction to help you decide how to form your business." - Michael J Reed |
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