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Is the LLC a corporation or a partnership?

A LLC gives entrepreneurs in the U.S. the freedom to classify themselves as a corporation or as a partnership. When it comes to paying taxes, this is an important decision. If the founders do not decide, their LLC will automatically be classified as a partnership. However the LLC is classified in the U.S. does not necessarily affect its status in Germany if it is active there and generates taxable income. In Germany, the tax authorities decide. A company in the U.S. determined to be a LLC partnership could be classified as capital company in Germany. However, the shareholders can contract (Operating Agreement) to formulate a LLC so that the LLC is almost always classified in Germany as the founders intended.

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Ratings: 4.5 of 5 | 845 vote(s)

Testimonials

When setting up business operations in the U.S. initially we had many open questions and uncertainties. We not only saved the high cost of a specialized lawyer, with ALTON LLC we found an experienced, and German-speaking, partner to not only found our company but also for consulting advice as well as for all our necessary office services such as postal services, telephone and fax services, and much more - and all to our complete satisfaction. - Markus Meixner (Telecommunications Software GmbH)

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