What should I know about an LLC taxed as an S corporation?

Answer by  Chaneygirl (1755)

You wil not pay SE tax on the income of the S-corp, but there are more limits on benefits members can take in an s-corp.

Answer by  cynosure (376)

S Corporations are flow-through corporations, so any earnings disbursed by the corp will be taxed directly on the LLC members' return. The LLC is invisible for tax purposes.

Answer by  Att4372 (1704)

An LLC is not taxed. It is a pass-thru entity. All income and expenses pass to the owner. An S corp is an entity. The owners pay the tax.

Answer by  paulasheri (28)

An LLC stands for Limited Liability Company and is not a corporation. The LLC that elects to be taxed as a S-Corporation will file a Form 1120-S with the IRS.