Business Formation 🏛 IRS

LLC Formation — Federal Tax Treatment

LLCs are not recognized as a federal tax classification. By default, single-member LLCs are disregarded entities (taxed as sole proprietors), and multi-member LLCs are taxed as partnerships. LLCs may elect to be taxed as S corps or C corps by filing Form 8832 or Form 2553.

Source Agency
IRS

Last Verified
March 1, 2026

Next Review
May 30, 2026

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