SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/biz-multi-member-llc-partnership

By default, how is a domestic LLC with two or more members taxed?

As a partnership, unless it elects to be a corporation.

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  1. As a partnership ✔
  2. As a disregarded entity
  3. As a C corporation

Why: The IRS classifies a domestic LLC with at least two members as a partnership for federal income tax. It can file Form 8832 to elect corporate treatment instead.

Huh, didn't know that: That means a multi-member LLC usually files Form 1065 and sends each member a K-1.

The dad joke
Why did the multi-member LLC bring extra chairs? Tax time was a partnership meeting.
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References

Answer: As a partnership. The IRS classifies a domestic LLC with at least two members as a partnership for federal income tax. It can file Form 8832 to elect corporate treatment instead.

  1. IRS: Limited liability company (LLC) www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc
    a domestic LLC with at least two members is classified as a partnership for federal income tax purposes
    Checked 2026-10-11.

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