LLC vs S-Corp & Entity Choice
“We are two partners starting a local service business, is a multi-member LLC automatically treated as a partnership by the IRS?”
A multi-member LLC is often treated as a partnership for federal tax purposes by default, but the full answer depends on how the entity is organized, whether any election has been made, and how the business is set up to operate. For two partners starting a local service business, the ownership split, management structure, and whether the LLC is treated as a separate tax entity can all affect the filing approach. State rules and any special elections can also change the outcome, so the classification is not always automatic in every situation. Working through the specifics with a CPA is the cleanest way to land on the right move.
In your 90-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“I formed a single-member LLC but forgot to get an EIN, can I just use my Social Security number on my Schedule C without issues?”
“I am transitioning my W-2 income into a consulting business, does electing S-Corp status actually lower my self-employment tax?”
“My solo business is making about the same as my old salary, should I switch from a sole proprietorship to an S-Corp?”
“I have a profitable side hustle on top of my day job, is it worth the administrative cost to form an LLC just for that income?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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