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Anonymous
Anonymous asked in Business & FinanceCorporations · 2 months ago

Why are so many massive corporations LLCs instead of inc?

4 Answers

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  • ?
    Lv 5
    2 months ago
    Favorite Answer

    Because LLCs are pass-through entities for tax purposes, or at least they can elect to be pass-through under Treas. Reg. section 301.7701-3.  That means that unlike C-corporations, they do not pay income taxes on their net earnings every year, and instead they can distribute those earnings to their shareholders, who will be taxed on them only once and without having the payments be treated as a taxable dividend.  

  • A Hunch
    Lv 7
    2 months ago

    They aren't.

    Like your question yesterday... Pepisco is not an LLC.

  • ?
    Lv 7
    2 months ago

    LLC is a better tax dodge.

  • Wayne Z
    Lv 7
    2 months ago

    They aren't.

    However, many have LLCs that operated under them.

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