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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 54710
Experience:  32 years of experience practicing law and a businessman.
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In forming an LLC with a single member, what is the most advantageous

Customer Question

In forming an LLC with a single member, what is the most advantageous selection between single member, partnership, or sub-chapter S status? I am a 1 person forming the LLC, but I could have a partner with a nominal interest if that is advised.
Submitted: 7 years ago.
Category: Business Law
Expert:  Richard replied 7 years ago.

Good evening. Actually, you are better of as a single-member LLC. As a single member LLC, you have all the advantages of any limited liability entity, but you can report your LLC's operations on Schedule C of your Form 1040 and do not have to go to the expense of preparing a separate tax return for your entity. An LLC does not elect S Corporation status....an LLC is already taxed as a partnership...meaning it is a flow through entity; rather a S Corporation election is made by a corporation so it can also be taxed as a partnership.

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.