So your tax status will look very similar to a sole proprietorship (i.e., the business isn’t separate from the owner for tax purposes). If you are the one and only member of your LLC, the IRS will treat your tax status as a disregarded entity (unless you elect otherwise). But not to worry, the below section covers the income tax requirements for all three types. If you don’t make a choice, by default, your LLC will be taxed as a sole proprietorship or partnership. It can either be taxed as a sole proprietorship (one owner), partnership (two or more owners), or corporation (any number of owners). A business owner can choose how to have their LLC taxed.
The IRS will assign a default tax status based on whether just one person or multiple people run the LLC. Unfortunately, that doesn’t mean you get to skip paying income taxes altogether. You create and register an LLC in a state, but as far as the IRS is concerned, there’s no income tax form for an LLC. They don’t actually recognize LLCs as an entity.
Want to pay income taxes for your LLC? The IRS will throw you a bit of a curveball.
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