check-the-box election
The federal tax rule that lets an LLC choose how it is taxed: by default as a partnership (or as a disregarded entity with one owner), or, by filing an election, as a corporation; foreign owners sometimes elect corporate treatment to use tax treaties.
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elección fiscal check-the-box
Regla federal que deja a la LLC elegir su régimen: por defecto es transparente (partnership, o entidad ignorada si tiene un solo dueño); con una elección puede tributar como corporation. Dueños extranjeros a veces eligen la corporation para aprovechar tratados.
ExamplesEjemplos
- The Mexican investors checked the box so the LLC would be taxed as a corporation. Los inversionistas mexicanos hicieron la elección para que la LLC tributara como corporation.
AuthorityFuente: Treas. Reg. § 301.7701-3
RelatedRelacionados: limited liability company (LLC), pass-through taxation
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