LLC tax question

[diver743]

When setting up an LLC (I did it through Legalzoom and am actually waiting on an answer to this question), would my LLC have been defined further during setup as C, S, or P? Or are those tax classifications that I am free to choose as I please when filling out a form such as the W9, which asks that question when picking LLC?

[suba]

As a LLC - all revenue and expenses flow through to you and the other members - regardless of however much you put in your pocket.
If you set up the LLC as a 50% partnership that means that 50% of all net revenues flow to you personally regardless if you actually take the money out.
You want to reduce taxes then find ways to lower your net revenues like making more business purchases.
Taking less out of the business will do nothing to lessen your personal tax burden.


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[aodvg]

You can set it up after you incorporate the business. The incorporator will probably send you a kit of forms and you will be able to define how to be taxed in them. The most common is using the LLC to be taxed as partnership if you have partners of course, if you are the sole owner you would have to select either as corporation or as a sole propietor.

[jasonpat]

Its beneficial if you have the the partner with the ownership it will help to reduce your tax burdens.

[webspider]

hello Friends,
You still have all these tax advantages whether you own the rental property in your own name or in the name of some passthrough entity such as an LLC or an S-corp. .
Thanks

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