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How to use Tax Savings LLC
It would be useful for you if you form an LLC or limited liability company, if you are interested in doing business. You can save your business some money if you know how to make proper use of tax savings LLC, which come in various forms.
CLL companies must "pass through taxation" laws. In other words, LLC owner of the company should report its earnings or losses of your company statements individual tax. That is, the company can not be taxed as an individual. Unlike C corporations, where corporate profits or losses are considered tax at the corporate level, these firms LLC and its shareholders are also taxed on their individual dividends. Therefore, if your company is small, LLC, and only a few shareholders, then you can save significantly by the tax savings LLC if you are an owner or shareholder.
You would be taxed individually government as a sole proprietor if you are an individual owner of the LLC. But if more than one owner, then the IRS will tax according to the association. However, even if an LLC is owned by only a few people and the company is actually the owner then you can provide tax savings LLC because of government policies not to tax both corporate and personal level.
Moreover, the possibility of review by the IRS also are minimal form of this company Thus, along with tax savings LLC. Statistics obtained by studies showing that taxpayers submitting tax unincorporated Schedule C business because often are two to three per cent chance of being audited by the IRS. However, there has been running on the possibilities LLC 0.33% of the audited. It would not correct to say that you can serve various other benefits, along with tax savings LLC, through the formation of your company in this way. Most of us always survive to avoid an audit in our company!
You should talk to your lawyer and tax consultant every time you turn your business into the company LLC. You need an attorney to help with the LLC regulations and which differ by state and only a knowledge of the laws of your state can cope with this facility. Would best to check with your tax advisor what would be the exact implications as opposed to now unique partnership property if you convert your business to an LLC. A Once you have gone through all the facts, it is time to decide on the type of business entity.
It can be difficult to understand all the tax implications would incurred by owning a business. Remember that it is always beneficial to keep informed as the way your business works be created or could have a major financial impact on their personal finances and your business too.
About the Author
Abhishek is a Tax Consultant and he has got some great tips on Filing And Understanding Taxes! Download his FREE 84 Pages Ebook, “Taxes Made Easy!” from his website http://www.Taxes-Guru.com/777/index.htm . Only limited Free Copies available.
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