Hi

One of the nicest things about an LLC is that you get to decide how your business is taxed: as a C corporation, S corporation, partnership, or sole proprietorship.  As I explain in the video at the top right, an LLC has access to all the benefits of a C corporation or S corporation by electing to be taxed as one, or the LLC can elect to have lower taxes and fewer regulations by having it taxed as a sole proprietorship or partnership.

How you want it taxed may be a matter of trust.  Is it just you?  If you have other owners, do you trust them implicitly to always give you your fair share of the profits, or do you want to bystep possible issues by having it taxed as a S or C corporation so that the profits (and losses) must be divided up according to membership shares?

How you decide to have your LLC taxed is mostly an accounting issue.  If you find that you could save more by changing your tax election, it is possible to file the proper forms and amend your operating agreement to reflect the change.