Multi Member LLC
Multi-Member LLC comprises of two or more members, with the flexibility of a partnership and limited liability. Multi-Member LLC tax returns are taxed like partnerships for both federal and state purposes.
Advantages:
- No limits to members in a Multi-Member LLC.
- Members can be individuals, corporations, or LLCs.
- It does not pay corporate taxes and can opt to be taxed as an S-Corp or C-Corp without its hassles.
Disadvantages:
- It requires registration with your state and other paperwork.
- Failure to keep accurate records is a common mistake.
- Company funds can be misused.
