LLC taxed as a Partnership
- The LLC can be owned by members who are individual people and/or legal entities.
- The LLC can be managed by all of the members or by one (or more) managers.
- A manager may be a member but it is not a legal requirement to be a member.
- The LLC can be formed and registered in any U.S. State.
- The LLC needs to have a registered representative located in its state of formation for delivery of legal service.
- The registered representative can be a professional firm that acts as the registered representative for thousands of LLCs, or it can be one of the owners of the LLC, if that owner is a legal resident of the state.
- The LLC needs to be registered as a foreign entity in any other state where it has nexus (nexus generally means owning property or having workers or sales-people physically within that state).
- The LLC also needs to have a registered representative located in each other state where it is registered as a foreign entity for delivery of legal service.
When there are two or more members, the default income tax classification is Partnership, filing IRS Form 1065 each year on March 15th.
Optionally, the LLC may file a Form 8832 and "check the box" to elect to change that default to C-Corporation, filing IRS Form 1120 each year based on the year-end date that is adopted. But see Form 2553 to elect to change the default to S-Corporation, filing IRS Form 1120-S each year on March 15th.
In community property states, if the only owners of the LLC are one legally married couple, then together they may choose to file as a Partnership or as two separate Schedule Cs.