Question regarding LLC EIN

[Rudy Estrada]

I recently created a TX LLC to buy and hold rental properties. The LLC has 2 members and when I registered to get an EIN with the IRS, my registration got switched from an LLC to a Partnership. The IRS website mentioned something about applying to switch back to a corporation status instead of being a Partnership. My question is: Does being registered as a partnership instead of an LLC will make any difference when it comes to tax/legal matters? Thank you in advance for any input you may provide.

[Mike S.]

There is no such thing as being taxed as an llc...

An single member llc is by default seen by the irs as a disregarded entity.

A multi member llc is by default seen by the irs as a partnership.

You can also choose to have your llc taxed as a c Corp or s corp if you make the election with the irs. It doesn’t change the fact that your company is still an llc. Taxation status and company legal formation are two different things.

For a disregarded entity you will have no tax filing. For a partnership you will have to file a 1065 and issue K1 to its members.