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Election Guide

LLC Tax Elections

Choose how your LLC is taxed

Tax Election Options

ElectionDescription
Disregarded EntitySingle-member, Schedule C
PartnershipMulti-member, Form 1065
S CorporationForm 2553 election
C CorporationForm 8832 election

When to Elect S-Corp

Consider S-Corp If

Net profit exceeds $40-50K

Save 5-15% on SE tax

Stay Default If

Lower profits, simple structure

Less compliance burden