Legal Question in Tax Law in Florida

Hello,

I am planning on forming an LLC and I am confused about whether or not to set it to be taxed as an "S" corp for tax purposes.

I have also been told to manage the LLC with a managing LLC for security reasons (so no one can sue me).

Are these valid concerns?

thanks,

ken gebert


Asked on 12/22/09, 8:39 am

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Ken:

It depends on the purpose of the LLC, where it is located, and other busiess issues. Usually, the LLC is best treated as a Pass-through entitity for tax purposes. If it is treated as a partnership, a 1065 is filed. If it is a single member disregarded entity, you would file a Schedule C with your 1040. There are also state tax considerations.

You really need a tax and business attorney to advise you, set-up the proper entities, and help your business succeed.

I hope this helps!

Ron Cappuccio

www.TaxEsq.com

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Answered on 12/27/09, 10:08 am


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