What makes LLCs tick
LLCs continue to grow in popularity, especially among sole proprietors and small business owners. And no wonder: They combine the tax benefits of a passthrough entity with the legal protection afforded to old-fashioned corporations.
Here’s the drill: LLC owners (called “members” in tax lingo) generally report the income or losses from the business on their personal tax returns. As with an S corporation or partnership, items of income and loss are passed through to the LLC members.
Most important, the LLC isn’t a taxpaying entity itself (even though it ...(register to read more)