Check my answer.Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed?Under the check-the-box Regulations, an unincorporated entity with only one owner can file as an LLC and would be classified as a disregarded entity. LLC’s do not typically pay federal income taxes, but the LLC would need to report and pay employment and excise taxes.

Internal Revenue Service has classified the businesses as : Sole proprietorship S corporation C…

Answered: Can a sole proprietor form as a…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 3BD

See similar textbooks

Related questions

Question

Check my answer.

Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed?

Under the check-the-box Regulations, an unincorporated entity with only one owner can file as an LLC and would be classified as a disregarded entity. LLC’s do not typically pay federal income taxes, but the LLC would need to report and pay employment and excise taxes.

Expert Solution

Step 1

Internal Revenue Service has classified the businesses as :

Sole proprietorship
S corporation
C corporation

Each of them has eligibility for different type of deductions and exemptions and different return submission requirements and related relaxations.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions