BobH Posted November 17, 2021 Report Share Posted November 17, 2021 If an LLC has elected to be taxed as a C Corp can the LLC pay dividends the same way that an entity formed as C Corp would pay them? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted November 17, 2021 Report Share Posted November 17, 2021 Yes, it can. It will need to issue a 1099-DIV to the recipient(s). This entity will also have the same issue of double taxation as regular C corps. Keep in mind that as a C corp this entity can put an owner on payroll, create a deductible expense at the corporate level, and can control the timing of income recognition at the personal level since it is not a flow-through entity. Quote Link to comment Share on other sites More sharing options...
Lee B Posted November 17, 2021 Report Share Posted November 17, 2021 Also, with a C Corp you have more flexibility to load up on fringe benefits assuming the business is profitable enough to support the additional cost of the benefits. Quote Link to comment Share on other sites More sharing options...
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