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Why are so many massive corporations LLCs instead of inc?
- ?Lv 52 months agoFavorite 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 HunchLv 72 months ago
Like your question yesterday... Pepisco is not an LLC.
- ?Lv 72 months ago
LLC is a better tax dodge.
- Wayne ZLv 72 months ago
However, many have LLCs that operated under them.