White Paper

15 Pages
  • 15 Pages

IRS Tax Audits and Tax Planning for Pass-Thru Entities - LLCs and S-Corps

 

An LLC’s principal advantage over a general partnership is that no member is personally liable for the debts of the partnership.

Based on IRS tax audit statistics, LLCs and S-corporations tax planning strategies may both reduce IRS tax audit risk while providing asset protection from 3rd party creditors. The “check the box” regulations of the federal tax laws provide that an LLC with two or more members may choose to be taxed as either a partnership or a corporation. The LLC must file an election to be taxed as a corporation or it will automatically be treated as a partnership. Download this white paper to read more on LLC tax compliance issues.