Limited Liability Companies For Dummies, 3rd Edition

Chapter 14

Making Cents of Taxes

IN THIS CHAPTER

Understanding how your LLC is taxed

Finding out what to file based on tax status

Saving on taxes with your LLC

Just the thought of taxes probably makes you want to throw this book across the room, but don’t do it. This chapter isn’t the most entertaining one you’re going to read, but it’s quick and painless, I promise. Although taxes can be a pain in the butt, by educating yourself about them you gain the upper hand and can end up paying less. Just think, after reading this chapter, you’ll be able to stride into your accountant’s office with your head held high, with no problem discussing the tax basis of assets, tax reporting requirements for LLCs, and how you can avoid sending a chunk of change to the IRS.

LLCs can be taxed a multitude of ways, but most LLCs just stick with the default partnership taxation. And why not? It’s a great way to be taxed! In Chapter 8, I go through all the various forms of taxation you can choose. At this point, I assume you’ve already elected your company’s tax structure and are now ready to deal with the ins and outs of managing it — maintaining books, filing your federal returns, and so on — and avoiding ...