Custom Auto Body & Detailing, LLC, is a limited liability company. Its members include Dennis and Estelle. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as

Question

Jase Washington

Social Studies

11 January, 07:22

Custom Auto Body & Detailing, LLC, is a limited liability company. Its members include Dennis and Estelle. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as

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Ryker Watts · Answer 1

It will be taxed as a partnership.

Explanation:

An LLC with more than one member will always be taxed as a partnership, as the IRS doesn't recognize LLCs as business entities for tax purposes. The partnership will have to file an information return on IRS Form 1065 to pay its taxes.