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Home Q&A Forum LLC tax advantages?

Startup

LLC

Texas

Asked on May 24, 2023

LLC tax advantages?

I recently started a small business and am considering forming a limited liability company (LLC). I understand that LLCs provide certain protections for business owners, but I am not clear on the tax advantages of an LLC. I would like to know what kind of tax benefits I could expect if I form an LLC.

1 Attorney answer

Answer

Startup

Texas

Answered 388 days ago

Jimmy V.

ContractsCounsel verified

Business Lawyer
Licensed in Texas
Free Consultation

LLCs are "pass-through" entities for tax purposes. In other words, there is no income tax due on the company level. The distributions "pass through" to you and you report them on your personal tax return. This prevents double taxation.

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