A limited liability company can be taxed four different ways for federal income tax purposes. LLCs can be taxed as:
- Sole proprietorship if there is one owner or two owners who are husband and wife who own their interest as community property.
- Partnership if the LLC has two or more owners
- C corporation
- S corporation if all eligibility requirements are met
The default tax method for a single member LLC is sole proprietorship, which means the LLC does not file a tax return. All income and deductions go on the member’s federal income tax return.
The default tax method for a multi-member LLC is partnership, which means the LLC files a partnership tax return, but does not pay federal income tax. Each member gets a K-1 form and reports the member’s share of income and deductions on the member’s federal income tax return.
An LLC can file an IRS form 8832 to elect to be taxed as a C corporation. LLCs that qualify to be S corporations for federal income tax purposes can file IRS form 2553 and elect to have the LLC taxed as an S corporation under S chapter S of the Internal Revenue Code.
To learn more about this important topic see my son LLC attorney and former CPA Richard C. Keyt,’s article called “How are LLCs Taxed?“
We Want to Form Your Arizona LLC
See the contents of our three LLC packages. All of our LLC packages include us forming the LLC and getting it approved by the Arizona Corporation Commission the same day you hire and pay us. Each LLC package includes a custom Operating Agreement, Arizona's $85 expedited LLC filing fee and us acting as the LLC's statutory agent. The $897 Silver LLC is our most popular package.
Our $1,397 Gold LLC package is for people who want confidentiality and don't want their name and address to appear on the public records of the Arizona Corporation Commission. The Gold LLC includes a revocable living trust that causes assets in the trust, including the LLC, to be inherited by your loved one(s) without the need for an expensive, time-consuming public probate if you were to die. This trust can own any of your assets including your home and on your death all the assets in the trust pass automatically to the person or people named in the trust agreement without the need for an expensive, time-consuming and public Superior Court probate.
How to Hire Us
To hire us to form your LLC within 24 hours of you paying us and approving your company's formation questionnaire, select one of the following options:
1. Phone (the easiest way): Call one of the following Arizona LLC attorneys and give your LLC information.
- Richard Keyt at 480-664-7478
- Richard's son LLC attorney and former CPA Richard C. Keyt at 480-664-7472
2.
Online: Complete our online
LLC Formation Questionnaire.
