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Bruce and Bob organize Black LLC of the current year

Bruce and Bob organize Black LLC on May 10 of the current year. What is the entity's default taxclassification ? Are any alternative classification(s) available ? If so, (1) how do Bruce and Bob elect the alternative classification(s) and (2) what are the tax consequences of doing so ?

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What is the entity's default tax classification ?

-- The default tax classification for an LLC is a partnership as long as there is more than one owner, and will be taxed as a partnership until an election is made. If there is one owner, the LLC will be taxed as a sole proprietorship.

Are any alternative classification(s) available?

-- The LLC can be treated as a sole ...

Solution Summary

Bruce and Bob organize Black LLC on May 10 of the current year. What is the entity's default taxclassification ? Are any alternative classification(s) available ? If so, (1) how do Bruce and Bob elect the alternative classification(s) and (2) what are the tax consequences of doing so ?

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