A limited liability company shares the tax advantages of a partnership.

Question

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A limited liability company (LLC) is treated as a pass-through entity for tax purposes, similar to a partnership. This means that the LLC itself does not pay taxes on its income, but instead, the profits and losses are passed through to the individual owners of the company, who then report them on their personal tax returns. This provides the tax advantages of a partnership, including the ability to avoid double taxation and the availability of certain tax deductions and credits.

A Limited Liability Company Shares the Tax Advantages of a Partnership