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How Are LLCs Taxed?

If more than one person is involved in the creation of the LLC, then it is presumed to be a partnership LLC when it comes to federal tax purposes. The IRS states that this can be altered to traditional corporation taxation if the LLC owners file Form 8832. If only one person forms an LLC, then the LLC is considered a separate entity from that individual. For tax purposes, you will have to file taxes as either a corporation, sole proprietorship, or partnership, depending on the kind of LLC you choose.

As a note, LLCs may also elect to be taxed as a corporation.