What are the 'check-the-box' regulations under Treas. Reg. 301.7701-3 and how do they affect my LLC's tax classification?
I'm a UK citizen and I formed an LLC in New Mexico for a consulting business. My tax advisor mentioned something called the 'check-the-box' regulations and said my LLC could be classified as a disregarded entity, partnership, or corporation for tax purposes. I thought an LLC was just an LLC — why does the IRS classify it differently? Can I choose which classification I want? And what happens if I don't file anything — does the IRS just pick one for me?
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