LLC Taxes

Discussion in 'LLC Formation' started by SpencerS, Aug 14, 2017.

  1. SpencerS

    SpencerS New Member

    I have an LLC that I own with 2 partners. Is there anything simple I can do to reduce our tax liability?
     
  2. admin

    admin Administrator Staff Member

    Spencer- thanks for your post!

    With taxes, the answer is never simple. However, you may be able to lower your taxes by filing as an S Corp rather than a partnership. This is technically a decision that you are supposed make when you first create the LLC, but, if you didn't do so, there are ways to go back and change this. However, it's not a good fit for all LLCs (for example, if you have or want to have investors that are businesses rather than individuals, you can't file as an S Corp). Here is an article that explains the benefits of filing as an S Corp and who it is a good fit for: http://www.choosewhat.com/starticle...ial-savings-by-filing-taxes-as-s-corporations

    Hope this helps. Best of luck!
     

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