LLC taxed as Corp & stock issuance

[dsi]

When an LLC elects to be taxed as a Corp, must stock be issued? vs- member units?

[ChEAr$]

Hey Dave!

When an LLC elects to be taxed as a Corp, must stock be issued? vs- member units?

No, and I'll tell you why.

An LLC is not a corporation and only corporations issue common stock.

See my responses "elsewhere"

[OldJack]

The member units (or member percentage ownership) are treated as shares of stock for tax purposes. S-corp distributions must be according to the units (or percentage of ownership) regardless of what the LLC operating agreement might say. If there is to be unequal distributions (per ownership) you would need to do so by way of W2 wages.

[dsi]

Thank you Harlan and Old Jack for making that clear. You put the right color ring around that raccoon's tail, as Jerry would say.