Law Offices of Karen Brady, P.C.
Dedicated to your family and your future
Call for Consultation 888-806-7304 / 303-835-1811

DO NOT CONFUSE "LLC" WITH PARTNERSHIP TAXATION

This article by a Colorado lawyer is the second attorney I have found who is using the term LLC as an apparent shorthand for a limited liability company taxed as a partnership. All of the reasons he cites are good reasons not to use an LLC are reasons not to choose partnership taxation for your limited liability company. Some of them may also be reasons not to elect S corporation status for the LLC. These are reasons to have your entity taxed as a C Corporation.

But the author seems to imply that a C Corporation and an LLC are mutually exclusive. LLCs can be taxed as C Corporations. In fact, LLC's themselves don't have a tax status. They have to choose one. It's true that if a multi-member LLC doesn't choose a tax status, it will be presumed to be a partnership. But electing corporate taxation status isn't hard. It can be done with IRS Form 8832.

As an attorney, I prefer precision in language. "You keep using that word. I do not think it means what you think it means."

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

How can we help? Request a consultation.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Law Offices of Karen Brady, P.C.
5400 Ward Road
Arvada, CO 80002

Phone: 303-835-1811
Toll Free: : 888-806-7304
Fax: : 303-424-2599
Arvada Law Office Map
map