Submitted by Chad A Kupper

A limited liability company is flexible, and offers distinct advantages over a sole proprietorship, namely, the ability to reduce the personal liability of its members. But, did you know that an LLC also offer pass-through taxation in certain circumstances? If there is only one member in the company, the LLC is treated as a “disregarded entity” for tax purposes, and the individual owner would report the LLC’s income or loss on Schedule C of his or her individual tax return. Thus, income from the LLC is taxed at the individual tax rates. Make sure you know which corporate tax election is best for your LLC. Ask us how we can help you set up the right business for your needs.