Actually, an LLC can be taxed as an S-corp. by filing an election.  A sole member LLC is diregarded for federal income tax purposes, unless an election is filed to be treated as an S-corp.  That provides a lot of flexibility.  I have an LLC and when it made sense to do so, we filed the election to be taxed as an S-corp.

Of course, LLC Acts vary by state.  So, it is a good idea to discuss this kind of planning with your accountant and attorney before doing anything.

Best,
Robert A. Franco
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