Posted by eric on March 28, 2005 at 15:05:35:
I would defer to your CPA. However, S-corps and LLC are taxed the same as partnerships. If you want to be taxed at the entity level (i.e. C-Corp), then you would make that election and then file a IRS Form 8832 as such. However, if you elect to be taxed as a corp on form 8832, then file form 2553 for S-Corp election, then you are back to where you began as an LLC being taxed as a partnership (i.e pass through).
LLC tax status - Posted by Brad Sheridan
Posted by Brad Sheridan on March 28, 2005 at 10:56:44:
Here’s the short of it…there are 5 of us that have just formed an LLC in Delaware. We are now in the process of obtaining our Federal EIN and need to decide whether to be taxed as a partnership (the default for LLCs) or as an S-Corp. Our plan is to buy and hold real estate (land and/or rentals). We’re planning on not pulling out any “salaries” in the first 5 years or so, and also plan on using 1031 exchanges. In other words, this is simply a wealth building initiative by all of us.
To that end, which tax election should be select? We are planning on meeting with a CPA to discuss, but I found this site and after reading several of the posts, I can tell that the people here are well versed in these matters.
Any insight greatly appreciated. Thanks