Limited Liability Companies

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Question

What is the default federal tax classification of a multi-member LLC with no election?

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Answer

Partnership.

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Question

Why does a default disregarded SMLLC still matter for tax even though it is ignored for income tax?

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Answer

The owner reports the activity directly, and SE tax may apply.

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Question

How far before or after filing can a Form 8832 election be effective?

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Answer

Up to 75 days before or 12 months after filing.

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