SEE-2 - Business Entities and Considerations - Section 1.1

Compare business entity types - sole proprietorship, partnership, C corporation, S corporation, and LLC - and apply the check-the-box default classification and election rules.

Compare how income, liability, and self-employment tax flow through each entity type and recognise the default federal tax classification of a single-member LLC (disregarded entity) versus a multi-member LLC (partnership). Apply the check-the-box rules on Form 8832 and the S election on Form 2553, and identify when an entity needs an Employer Identification Number and which accounting period and method it may adopt.

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