Introduction: Is My LLC an S or C Corp?
If you’ve formed an LLC, you might wonder: “Is my LLC an S or C Corp?” The short answer is — by default, it’s neither. However, you can elect to be taxed as an S Corporation or C Corporation for strategic tax advantages. This article will help you understand your current LLC status and whether you’ve made one of these elections.
LLC vs. S Corp vs. C Corp: What’s the Difference?
Before answering “is my LLC an S or C Corp?”, it’s important to understand how these structures differ:
| Structure | Legal Structure | Taxation | Ownership Rules |
|---|---|---|---|
| LLC | Legal entity | Pass-through (default) | Flexible |
| S Corporation | Tax election | Pass-through (with savings) | Limited to 100 U.S. shareholders |
| C Corporation | Legal entity | Double taxation | Unlimited shareholders |
Is an LLC Automatically an S or C Corp?
No. By default:
- A single-member LLC is taxed as a sole proprietorship
- A multi-member LLC is taxed as a partnership
Neither of these is an S or C Corp — but you can choose either tax classification by filing specific IRS forms.
How to Tell If Your LLC Is an S or C Corp
Here’s how to find out your current tax status:
1. Check IRS Filings
- If you filed Form 2553, your LLC elected to be taxed as an S Corporation.
- If you filed Form 8832, your LLC elected to be taxed as a C Corporation.
2. Ask Your Accountant or Tax Professional
They can confirm how your LLC is currently taxed and whether you made an election.
3. Look at Your Tax Return
- If your LLC files Form 1120S, it’s taxed as an S Corp.
- If it files Form 1120, it’s taxed as a C Corp.
- If it’s on Schedule C (Form 1040), it’s a sole proprietorship.
- If it files Form 1065, it’s a partnership.
Why Elect S or C Corp Tax Status?
LLCs can elect corporate tax treatment for several reasons:
S Corp:
- Reduce self-employment tax
- Still maintains pass-through taxation
- Great for active businesses with healthy profits
C Corp:
- Lower flat tax rate (21%)
- Ideal for reinvesting profits and raising capital
- Subject to double taxation
Conclusion: Is My LLC an S or C Corp?
If you didn’t file a special tax election form with the IRS, your LLC is neither an S nor a C Corp — it’s just an LLC. But if you filed Form 2553 or 8832, you’ve chosen to be taxed as an S Corp or C Corp, respectively.
