Expert: John Kirk, CPA Date: 7/25/2008 Subject: Filing a tax return for an LLC
Question We formed an LLC at the beginning of 2006 with 2 members. My 2006 return was filed by a CPA as a S-corp. My new CPA for 2007 says an LLC cannot be filed this way, it must be filed as a partnership. Can we file our LLC as an S-Corporation? Are their benefits to filing one way or the other?
Answer An LLC is not a corporation, so it cannot be a S-Corp. The partnership form is the correct one.
There are more advantages in a S-corp than in a partnership, primarily in the savings of self employment taxes.
