{"id":6349,"date":"2013-10-30T08:11:20","date_gmt":"2013-10-30T15:11:20","guid":{"rendered":"http:\/\/www.keytlaw.com\/azllclaw\/?p=6349"},"modified":"2023-04-06T12:20:36","modified_gmt":"2023-04-06T19:20:36","slug":"llcl-tax-methods","status":"publish","type":"post","link":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/","title":{"rendered":"Watch Out for Ignorant Bank People"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1196px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p style=\"text-align: justify;\"><strong>Question<\/strong>:\u00a0 I went to the bank to open my LLC bank account and they need to know what kind of LLC I have.\u00a0 The bank wanted to know if I have an S LLC, C LLC or partnership LLC.<\/p>\n<p style=\"text-align: justify;\"><strong>Answer<\/strong>:\u00a0\u00a0 You need to go to another bank that knows how to deal with LLCs.\u00a0 The State of Arizona only has two types of LLCs, i.e., an LLC and a professional LLC (PLLC).\u00a0 You have an LLC.<\/p>\n<p style=\"text-align: justify;\">There are no such terms as S LLC, C LLC or partnership LLC.\u00a0 The person you are talking to is ignorant, which is troubling.\u00a0 He or she may be asking for the LLC\u2019s tax method under the internal revenue code, which could be:<\/p>\n<ul>\n<li>Sole proprietorship<\/li>\n<li>C corporation<\/li>\n<li>S corporation or<\/li>\n<li>Partnership<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Those terms refer to the four possible federal income tax methods availabe to LLCs under the Internal Revenue Code.\u00a0 The terms do not describe a type of LLC.<\/p>\n<p style=\"text-align: justify;\">The bank does not need to know how the LLC is taxed.\u00a0 The default tax method for your two member LLC is partnership.\u00a0 The LLC will be taxed as a partnership unless it files a timely IRS form 8832 (election to be taxed as a C corporation) or an IRS form 2553 (election to be taxed as an S corporation).\u00a0 The subject of the four possible LLC tax methods is discussed in great detail in your Operations Manual in your LLC portfolio.<\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[4665,8,37,4664],"tags":[],"class_list":["post-6349","post","type-post","status-publish","format-standard","hentry","category-bank-problems","category-faqs","category-operating-llcs","category-questions-people-ask"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Watch Out for Ignorant Bank People - Arizona LLC Law %<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Watch Out for Ignorant Bank People\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/\" \/>\n<meta property=\"og:site_name\" content=\"Arizona LLC Law\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:author\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:published_time\" content=\"2013-10-30T15:11:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-06T19:20:36+00:00\" \/>\n<meta name=\"author\" content=\"Richard Keyt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Keyt\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/\"},\"author\":{\"name\":\"Richard Keyt\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/9d6c74d30296559f95e238fa25182391\"},\"headline\":\"Watch Out for Ignorant Bank People\",\"datePublished\":\"2013-10-30T15:11:20+00:00\",\"dateModified\":\"2023-04-06T19:20:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/\"},\"wordCount\":414,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"articleSection\":[\"Bank Problems\",\"FAQs\",\"Operating LLCs\",\"Questions People Ask\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/\",\"name\":\"Watch Out for Ignorant Bank People - Arizona LLC Law %\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#website\"},\"datePublished\":\"2013-10-30T15:11:20+00:00\",\"dateModified\":\"2023-04-06T19:20:36+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2013\\\/10\\\/llcl-tax-methods\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Watch Out for Ignorant Bank People\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#website\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/\",\"name\":\"Arizona LLC Law\",\"description\":\"Information about Forming &amp; Operating Arizona LLCs\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\",\"name\":\"KEYTLaw, LLC\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/wp-content\\\/uploads\\\/logo.png\",\"contentUrl\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/wp-content\\\/uploads\\\/logo.png\",\"width\":500,\"height\":500,\"caption\":\"KEYTLaw, LLC\"},\"image\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"http:\\\/\\\/www.facebook.com\\\/keytlaw\",\"https:\\\/\\\/x.com\\\/azestateplanner\",\"http:\\\/\\\/www.linkedin.com\\\/pub\\\/richard-keyt\\\/5\\\/a88\\\/a30\\\/\",\"https:\\\/\\\/www.youtube.com\\\/user\\\/keytlaw\"],\"description\":\"We are Arizona attorneys who have formed 9,000+ Arizona LLCs. We also prepare wills, trusts and estate plans to protect our clients' most valuable assets - their loved ones.\",\"email\":\"rk@keytlaw.com\",\"telephone\":\"480-664-7478\",\"legalName\":\"KEYTLaw, LLC\",\"foundingDate\":\"2001-06-01\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"1\",\"maxValue\":\"10\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/9d6c74d30296559f95e238fa25182391\",\"name\":\"Richard Keyt\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/be46af086de7d79cb650301f8e2188550999d39b68ef6226ddae375f7b4c0778?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/be46af086de7d79cb650301f8e2188550999d39b68ef6226ddae375f7b4c0778?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/be46af086de7d79cb650301f8e2188550999d39b68ef6226ddae375f7b4c0778?s=96&d=mm&r=g\",\"caption\":\"Richard Keyt\"},\"description\":\"The author of this article is Richard Keyt, an Arizona limited liability company and estate planning attorney who has formed 9,800+ LLCs. His Silver &amp; Gold LLC packages include the $85 expedited filing fee, a custom Operating Agreement and 170 ebook called the \\\"Arizona LLC Operations Manual.\\\" Read Rick's 400 five star Google &amp; Birdeye reviews. Connect with Richard at 480-664-7478 or send him an email message at rk@keytlaw.com. Make a free office, phone or Zoom meeting appointment using his online calendar.\",\"sameAs\":[\"https:\\\/\\\/www.keytlaw.com\\\/\",\"http:\\\/\\\/www.facebook.com\\\/keytlaw\",\"http:\\\/\\\/www.linkedin.com\\\/pub\\\/richard-keyt\\\/5\\\/a88\\\/a30\\\/\",\"https:\\\/\\\/x.com\\\/azestateplanner\",\"http:\\\/\\\/www.youtube.com\\\/keytlaw\"],\"gender\":\"male\",\"jobTitle\":\"Estate Planning & LLC Attorney\",\"worksFor\":\"KEYTLaw, LLC\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Watch Out for Ignorant Bank People - Arizona LLC Law %","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/","og_locale":"en_US","og_type":"article","og_title":"Watch Out for Ignorant Bank People","og_url":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/","og_site_name":"Arizona LLC Law","article_publisher":"http:\/\/www.facebook.com\/keytlaw","article_author":"http:\/\/www.facebook.com\/keytlaw","article_published_time":"2013-10-30T15:11:20+00:00","article_modified_time":"2023-04-06T19:20:36+00:00","author":"Richard Keyt","twitter_misc":{"Written by":"Richard Keyt","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/#article","isPartOf":{"@id":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/"},"author":{"name":"Richard Keyt","@id":"https:\/\/www.keytlaw.com\/azllclaw\/#\/schema\/person\/9d6c74d30296559f95e238fa25182391"},"headline":"Watch Out for Ignorant Bank People","datePublished":"2013-10-30T15:11:20+00:00","dateModified":"2023-04-06T19:20:36+00:00","mainEntityOfPage":{"@id":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/"},"wordCount":414,"commentCount":0,"publisher":{"@id":"https:\/\/www.keytlaw.com\/azllclaw\/#organization"},"articleSection":["Bank Problems","FAQs","Operating LLCs","Questions People Ask"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/","url":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/","name":"Watch Out for Ignorant Bank People - Arizona LLC Law %","isPartOf":{"@id":"https:\/\/www.keytlaw.com\/azllclaw\/#website"},"datePublished":"2013-10-30T15:11:20+00:00","dateModified":"2023-04-06T19:20:36+00:00","breadcrumb":{"@id":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.keytlaw.com\/azllclaw\/2013\/10\/llcl-tax-methods\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.keytlaw.com\/azllclaw\/"},{"@type":"ListItem","position":2,"name":"Watch Out for Ignorant Bank People"}]},{"@type":"WebSite","@id":"https:\/\/www.keytlaw.com\/azllclaw\/#website","url":"https:\/\/www.keytlaw.com\/azllclaw\/","name":"Arizona LLC Law","description":"Information about Forming &amp; Operating Arizona LLCs","publisher":{"@id":"https:\/\/www.keytlaw.com\/azllclaw\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.keytlaw.com\/azllclaw\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.keytlaw.com\/azllclaw\/#organization","name":"KEYTLaw, LLC","url":"https:\/\/www.keytlaw.com\/azllclaw\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.keytlaw.com\/azllclaw\/#\/schema\/logo\/image\/","url":"https:\/\/www.keytlaw.com\/azllclaw\/wp-content\/uploads\/logo.png","contentUrl":"https:\/\/www.keytlaw.com\/azllclaw\/wp-content\/uploads\/logo.png","width":500,"height":500,"caption":"KEYTLaw, LLC"},"image":{"@id":"https:\/\/www.keytlaw.com\/azllclaw\/#\/schema\/logo\/image\/"},"sameAs":["http:\/\/www.facebook.com\/keytlaw","https:\/\/x.com\/azestateplanner","http:\/\/www.linkedin.com\/pub\/richard-keyt\/5\/a88\/a30\/","https:\/\/www.youtube.com\/user\/keytlaw"],"description":"We are Arizona attorneys who have formed 9,000+ Arizona LLCs. We also prepare wills, trusts and estate plans to protect our clients' most valuable assets - their loved ones.","email":"rk@keytlaw.com","telephone":"480-664-7478","legalName":"KEYTLaw, LLC","foundingDate":"2001-06-01","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"1","maxValue":"10"}},{"@type":"Person","@id":"https:\/\/www.keytlaw.com\/azllclaw\/#\/schema\/person\/9d6c74d30296559f95e238fa25182391","name":"Richard Keyt","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/be46af086de7d79cb650301f8e2188550999d39b68ef6226ddae375f7b4c0778?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/be46af086de7d79cb650301f8e2188550999d39b68ef6226ddae375f7b4c0778?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/be46af086de7d79cb650301f8e2188550999d39b68ef6226ddae375f7b4c0778?s=96&d=mm&r=g","caption":"Richard Keyt"},"description":"The author of this article is Richard Keyt, an Arizona limited liability company and estate planning attorney who has formed 9,800+ LLCs. His Silver &amp; Gold LLC packages include the $85 expedited filing fee, a custom Operating Agreement and 170 ebook called the \"Arizona LLC Operations Manual.\" Read Rick's 400 five star Google &amp; Birdeye reviews. Connect with Richard at 480-664-7478 or send him an email message at rk@keytlaw.com. Make a free office, phone or Zoom meeting appointment using his online calendar.","sameAs":["https:\/\/www.keytlaw.com\/","http:\/\/www.facebook.com\/keytlaw","http:\/\/www.linkedin.com\/pub\/richard-keyt\/5\/a88\/a30\/","https:\/\/x.com\/azestateplanner","http:\/\/www.youtube.com\/keytlaw"],"gender":"male","jobTitle":"Estate Planning & LLC Attorney","worksFor":"KEYTLaw, LLC"}]}},"views":8418,"_links":{"self":[{"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/posts\/6349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/comments?post=6349"}],"version-history":[{"count":1,"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/posts\/6349\/revisions"}],"predecessor-version":[{"id":13147,"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/posts\/6349\/revisions\/13147"}],"wp:attachment":[{"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/media?parent=6349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/categories?post=6349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.keytlaw.com\/azllclaw\/wp-json\/wp\/v2\/tags?post=6349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}