What are the tax benefits of organizing a business as a limited liability company?
If a limited liability company is organized properly, it will be taxed as a partnership. In some cases, it may even be taxed as a sole proprietorship. This means that there will only be one level of taxation. The profits and losses of the company are passed through to the individual owners, in the same manner as in the taxation of partnerships. Corporations, on the other hand, are subject to a double taxation–first at the corporate level and then an additional tax at the individual level, after corporate profits in the form of dividends are passed on to shareholders.
