Victor Roberts <xxx[at]lighting-research.com> wrote:

- quote -

That was actually the purpose for LLC's in the first place.
In the old days people would set up limited partnerships in
such a way that no individual person really had much
personal liability if the company failed. That led to many
cases in which the IRS wanted to tax the LP's as
associations taxable as corporations - won some, lost some.

So states set up LLC's for the purpose of having an entity
that could be taxed as a partnership but for which no
individual was personally responsible. Each state got a
private letter ruling supporting its statutes.

And in the end the IRS just threw up its collective hands
and basically said, screw it, let 'em do it any way they
want.

Stu

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Mike Lewis wrote:

- quote -

Page 4: "Any LLC can be treated like a corporation for tax
purposes by filing IRS Form 8832 and checking the corporate
tax treatment box on the form."

Phoebe

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Mike Lewis wrote:

- quote -

An LLC is not a corporation nor is it a partnership.
However, based on IRS regs, rulings and case law the IRS may
treat the LLC as a corporation or a partnership based on a
variety of facts and circumstances (organization,
dissolution, how members transfer ownership, etc.).

--
Alan
http://taxtopics.net

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Mike Lewis wrote:

- quote -

Mike:

I believe you missed that it is a four page article. On
page 2 (and highlighted in blue) is the following:

LLCs Can Elect Corporate Taxation
If your LLC will regularly need to retain a significant
amount of profits in the company, you (and your co-owners,
if you have any) may be able to save money by electing to
have your LLC taxed as a corporation. For details, see "Can
Corporate Taxation Cut Your LLC Tax Bill? " at the end of
this article.

That being said, the beginning of the article is poorly
written (IMHO) in that it does not mention that they are
talking about the *default* treatment and that a separate
article on LLCs treated as corporations is available on the
site.

*That being said*, it may have been deliberate in that to
get to page two you need to enter a zip code and that is one
way to get people to do it (even if they enter an incorrect
one). <G
Regards,

Peter C. Gatto, CPA

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Mike Lewis" <jmpj[at]cableone.net> wrote:

- quote -

Where does it say that? I read the four pages and they seem
to say that an LLC is not a corporation, which is correct,
but it can elect to be taxed as a corporation - which I did
not know.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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"Mike Lewis" <jmpj[at]cableone.net> wrote:

- quote -

No, per IRS check the box regulations.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Mike Lewis wrote:

- quote -

Well, I read all four pages, and there at the end of page
four is a discussion of just how an LLC may be treated as a
corporation.

or did I miss something?

Notice also no discussion on S corporation treatment.

ChEAr$,
Harlan Lunsford, EA n LA

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Per the following website, they stipulate that an LLC can't
be treated as a Corporation. Does anyone agree with it?

http://smallbusiness.findlaw.com/bus...llc-taxed.html

Mike Lewis

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