In short, federal tax classifications identify how you or your company want to be classified for tax purposes. On the Internal Revenue Service W-9 form, you can choose the tax classification that best suits your situation. They would select individuals/sole proprietorship as their federal tax classification.
How do you find out what info the IRS has?
Other ways to find your account information
- You can request an Account Transcript.
- If you’re a business, or an individual who filed a form other than 1040, you can obtain a transcript by submitting Form 4506-T, Request for Transcript of Tax Return.
- Find more assistance.
What is the tax difference between LLC and S-corp?
Any income an LLC generates is considered taxable income. With an S-corp, shareholders are paid a salary and the business pays their payroll taxes, which can be deducted as a business expense from the company’s taxable income.
How is the tax classification of a LLC determined?
It also assigns one of the two tax classifications to the LLC by default. The classification is determined by the number of owners within the LLC. The first classification is sole proprietorship, which is also the default if your LLC has one member. If you have more than one member in your LLC,…
What do you need to know about LLC tax classification W9?
The LLC tax classification W9 refers to the IRS form used by LLCs when working with independent contractors and vendors. This form, titled the W-9 form, must be completed by the LLC owner and provided to the vendor or contractor.3 min read What is IRS Form W-9?
How are S corporations classified by the IRS?
“S corporation” is simply a tax classification recognized by the IRS. Corporations that have fewer than 100 shareholders and meet some other requirements (like having members who are U.S. citizens or resident aliens and have only one type of stock) are qualified to file Form 2553 with the IRS choosing to be classified as S corporations.
Where to find information on complex tax topics?
For help, see: IRC Section 1031 (Cornell Law) Our telephone assistors will answer all non-complex capital gains questions. However, we will not do complex calculations for you such as calculating actual basis in complex situations. International Boycotting Income – for help, see: Form 5713, International Boycott Report