Enrolled Agent Exam [Part 2] 13, Limited Liability Company (LLC) — Default Tax Classification

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The default tax classification for a single-member LLC is a disregarded entity, with income reported on the owner's personal return, such as on Schedule C. - A multi-member LLC is treated as a partnership by default, requiring the filing of Form 1065 and the issuance of Schedule K-1s to its members. - How LLCs can change their default tax classification by filing Form 8832, the Entity Classification Election, to be taxed as a corporation. - The critical distinction between an LLC's legal structure under state law and its federal tax classification under IRS rules. - A common exam trap involving absolute wording that ignores an LLC's ability to elect a different tax status. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep