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Watch Out! Common Pitfalls with LLCs Taxed as S Corporations

March 04, 2025 (3 min read)

A limited liability company (LLC) can be taxed as an S corporation, but an S corporation is not always a good choice. Learn the tax options available to LLCs and the advantages and disadvantages of electing to be taxed as an S corporation. When evaluating the procedures for eligibility, use this checklist to focus on the definition of small business corporations, eligible entities, ineligible entities, terminations, late election relief, and Form 2553, Election by a Small Business Corporation.

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