Should I Form My Company As a Partnership Or Corporation?

If you are planning on forming an LLC corporation, thefederal or state statute or under a statute of a
only thing that you will need to do differently is file afederally recognized Indian tribe is automatically
Form 8832 with the IRS. The reason you need to fileclassified as a corporation if the business entity
this form when forming an LLC is because it allowsdescribes or refers to itself as incorporated or a
you to classify your business for federal tax purposes.corporation. Your business will also be classified as a
In certain cases, you do not need to file this formcorp for federal tax purposes if it is formed under a
because your business will automatically be classifiedfederal or state statute that describes or refers to the
as that way. This can happen because of the entitycompany as a joint stock association.
classification rules that are set forth by the IRS. If youMany people who are forming an LLC do not wish to
plan on forming an entity that fits into one of thefile it as a corporation because of the tax
guidelines set forth by the IRS than you will not have aconsequences that they face. If you want to be safe,
choice as to how your LLC is going to be classified foryou should consult with a CPA or tax attorney to get
federal tax purposes.some legal, certified advice before filing an entity.
Any limited liability company that is formed under a