Explore BrainMass

Explore BrainMass

    Bruce and Bob organize Black LLC of the current year

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 ?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:28 am ad1c9bdddf
    https://brainmass.com/business/accounting/bruce-bob-organize-black-llc-current-year-459891

    Solution Preview

    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 ?

    $2.19

    ADVERTISEMENT