By default, an LLC with alone one affiliate is burdened as a sole proprietorship, while those with two or added associates are burdened as partnerships. In both cases, pass-through taxation is used, acceptation all business profits, losses, deductions and credits are appear on affiliate allotment and not on a abstracted business return. Limited accountability aggregation associates do, however, accept the advantage of filing an acclamation with the Internal Revenue Service to accept the LLC burdened as a C or S corporation.
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