Limited Liability Company
Limited Liabilty Companies are another popular form of business entity. They are often used to hold real estate. LLCs can be taxed as sole proprietorships, if there is only one member. Or if there are multiple members at may be taxed as a partnership. An LLC may also elect to be taxed as a S Corporation by filing the proper forms in a timely basis wit the IRS.
Either way, the LLC is a flow through entity. It does not pay income tax, but rather the taxible income or loss flows through to the individual members. Tax is paid on your personal tax return.
