Do I get pass through taxation if I register my business as an LLC?

Asked 5 months ago

I need to know if an LLC is the right business structure for me or if I should just choose to have a corporation. I’ve heard about pass-through taxation. Now I just need to know what kinds of business entities allow it since the kind of entity one chooses affects the tax treatment of the income. Does registering your business as an LLC make one eligible for pass-through taxation?

Armando Valdez

Friday, September 16, 2022

Yes, the profits of an LLC pass through to the members of the LLC for tax purposes. You would report your share of the business's income and expenses on your personal tax return. Your share is equivalent to your investment in the company unless your operating agreement says otherwise.

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