Like sole proprietorships (one-owner businesses) and partnerships, an LLC is not considered a separate entity from its owners for tax purposes. This means that the LLC does not generally pay any income taxes itself; instead, the LLC owners pay taxes on their allocated share of profits (or deduct their share of business losses) on their personal tax returns.
LLC owners can elect to have their LLC taxed like a corporation. This may reduce taxes for LLC owners who need to retain a significant amount of profits in the company. For more on reporting and paying taxes as an LLC owner, see How LLCs Are Taxed.
Ready to Form an LLC? | ||
| You can form an LLC yourself--online or on your computer--or get help from a lawyer | ||
 Nolo's Online LLC | Form your own limited liability company with this comprehensive online LLC package. Form your LLC now. | |
 Form Your Own Limited Liability Company by, Anthony Mancuso | This bestselling book provides you with the instructions and forms you need to create an LLC in your state. Buy the book. | |
 Talk to a Lawyer | If you have questions about your LLC, get advice from a business lawyer near you. | |
Find us on Facebook
Follow us on Twitter
Find us on Google+
Watch us on YouTube
Listen to us on iTunes