Have a Tax Question? Ask a Tax Expert
That is not relevant for income tax purposes - but do relevant for employment or self-employment tax purposes.
In simple words - if net income generated by the LLC is relatively small - keep it as a partnership.
Also - if you are not sure at the starting point - keep it as a partnership.
But if the LLC produces substantial income - you might want to elect S-corporation tax treatment - that will add overhead - but allows some saving on employment taxes.
Let me know if you need any help with reporting.
I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.