Siesta Key, FL (PRWEB) January 06, 2014
How an LLC is taxed (Limited Liability Company) is the subject of a new article written by asset protection and tax planning attorney, Lee R. Phillips. It is important to know that under the law, a businessman can elect how to have their LLC taxed. The legal structure and asset protection of an LLC are not affected by the tax choice. The LLC tax election article helps businessmen use their LLC as one of the best tax saving tools available. It is definitely one of the most flexible tax tools, because individuals or partners can choose any tax structure they want.
To make an LLC tax election, the businessmen must file paperwork with the IRS within an allotted time period. If that is neglected, then the IRS will make the election by default. Mr. Phillips observes that many people ask, “What is an LLC tax election and how do I make one?” He then states, “I have written this article to help businessmen understand both the election choices and the various trade-offs. Many folks neglect the tax election and are stuck with what the government gives them.”
Some folks confuse the asset protection issues with the tax issues of a business. An LLC is an LLC for asset protection purposes, but it can be any one of a number of tax entity structures for tax purposes.
When forming an LLC, it is always a good idea to check with accountants and business professionals to review the specific business requirements and get the best options for any unique enterprise.
Mr. Phillips is an attorney who serves as a counselor to the Supreme Court of the United States. He enjoys helping other people apply the law, not only to provide asset protection, but also to use the law to structure businesses and save taxes. He is the author of 11 books, including his latest book, Protecting Your Financial Future. He has written hundreds of articles for professional publications. He also has released a new tax planning course called, Advanced Tax Tactics.