The Problem We Solve

What problem this service addresses

LLC tax treatment depends on entity-classification elections that most owners make passively or by default. A single-member LLC is disregarded for tax. A multi-member LLC is a partnership unless it elects otherwise. An LLC can elect S-corp or C-corp treatment via Form 8832 (and Form 2553 for S-corp). Each choice has different implications for payroll tax, distributions, ownership flexibility, and exit treatment. Most LLCs are sitting at the default classification when a different election would save material money.

Why Trust Troy Accounting

How we approach llc tax

  • Form 1065 partnership returns for multi-member LLCs with K-1 generation
  • Schedule C preparation for single-member LLC owners
  • Entity classification election analysis (Form 8832)
  • S-corp election filing for LLCs (Form 2553)
  • Multi-member LLC special allocation analysis under Section 704(b)
  • Operating agreement review for tax compliance
  • Multi-state LLC compliance and franchise tax filings

Our approach is documented in our client success methodology and our editorial standards. We are not a CPA firm; for engagements requiring CPA attestation we coordinate with our licensed CPA partner network. We do not exaggerate credentials or results.

What Happens Next

The process from inquiry to ongoing work

01

Discovery & Scope

We confirm the current entity classification, prior-year filings, ownership structure, and any pending changes.

02

Election Analysis

When a different classification would save material money, we run the analysis with quantified annual savings and document the decision.

03

Year-Round Planning

Throughout the year we monitor for events that would change the tax answer: new owners, new states, ownership transfers, growth past S-corp thresholds.

04

Annual Filing

Federal and state returns prepared and delivered for client review at least ten business days before each filing deadline.

Common Questions

FAQ

Should my LLC elect S-corp status?

If your LLC has net income above approximately $80K to $100K and you take meaningful owner draws, S-corp election typically saves payroll tax. Below that threshold the savings rarely justify the added compliance cost. We run the math individually.

I have a single-member LLC with no income, do I file a return?

Single-member LLC income is reported on the owner's personal return (Schedule C, E, or F as applicable). The LLC itself does not file a federal return unless it has elected corporate treatment.

What about state franchise tax?

State LLC fees and franchise taxes vary widely. California imposes an $800 minimum franchise tax. Texas requires the Franchise Tax report. Delaware requires the annual franchise tax. We file all required state returns.

Can you handle a multi-member LLC with foreign members?

Yes. See our Foreign-Owned LLC page for that specific scenario.

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