AIC to elect S Corporation status for federal tax purposes, enabling pass-through taxation

This election allows our businesses to be taxed as an S corp, avoiding corporate-level tax on income, which passes through to our members.

Key Aspects of an LLC Taxed as an S Corp

• • Tax Efficiency: S Corp status allows members to avoid self-employment tax on distributed profits, paying it only on their salaries, often resulting in significant savings.
  • Formation Requirements: The LLC must file IRS Form 8832 (Entity Classification) followed by Form 2553 (S Corp Election).

• LLC Restrictions: To qualify, the LLC must have 100 or fewer members (all of whom must be U.S. citizens/residents) and cannot have special allocations of profit/loss—all distributions must be proportional to ownership.
• Operational Responsibilities: The entity must pay reasonable salaries, file payroll taxes, and submit a separate tax return (Form 1120S), making it more administratively complex than a standard LLC.

For details, visit corporate records 

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Abdel Taboada Diaz 

Active Investors Club 

Management Team