| Limited liabilities companies or LLCs | | | | LLC but is not a corporation they can |
| are a tricky bunch to get any kind of | | | | file a special form, Form 8832 and |
| LLC tax deduction on. This is because | | | | choose to be a corporation or |
| the LLC tax reduction is not actually | | | | partnership. As long as there are at |
| recognized by the federal government. | | | | least two members they will qualify to |
| This can make it difficult for those who | | | | conduct business under one of these |
| classify themselves as LLCs to pay their | | | | headings. If there is only one member |
| federal taxes. But there are three | | | | they can only be classified as a |
| options that they can try to gain a tax | | | | corporation. Still taking advantage of |
| rebate if they are willing to put in a | | | | the LLC tax deduction can prove to be |
| little extra effort. | | | | difficult. |
| One of these is filing as a corporation. | | | | There is a default rule that can be |
| Another is if they file as a | | | | taken advantage of if a LLC decides not |
| partnership. One last way is to file as | | | | to file a Form 8832 at all. If there are |
| a sole proprietorship. | | | | at least two members it will |
| The government itself usually classifies | | | | automatically be qualified as a |
| LLCs as corporations and this is how | | | | partnership, and if there is only one it |
| they are usually taxed. But doing so may | | | | will automatically be qualified as a |
| disqualify them from the full benefit of | | | | sole proprietorship. This means they |
| a LLC tax deduction. | | | | have to file taxes as such and try for a |
| The ones that are usually classified as | | | | reduction under these headings. |
| corporations are ones that were started | | | | Two tips that are helpful in taking |
| under a State or Federal statute or | | | | advantage of getting a LLC tax deduction |
| under a statute affecting a recognized | | | | is to first of all definitely file a |
| Indian tribe. These ones cannot usually | | | | Form 8832. The other piece of advice |
| qualify for the deduction. Other ones | | | | would be to get the help of a certified |
| that may have a difficult time with the | | | | tax accountant or consultant. As you can |
| tax reduction include those who fall | | | | see there is not actually a LLC tax |
| under the description in section | | | | rebate, but you can take advantage of |
| 1.892.2-T or under Regulations section | | | | tax deductions even if you are a LLC. To |
| 301.7701-3 or any company considered an | | | | get the most out of a LLC tax deduction, |
| insurance company as well. | | | | be careful how you classify yourself and |
| Otherwise if a business claims to be a | | | | you will get the most you can out of it. |