An LLC magically eliminates taxes
A popular myth. An LLC is a legal structure, not a tax status. By default it's a pass-through entity — you still pay income tax on profits, and you may owe self-employment tax.
by J. Okafor
community verdict
76% debunked95 votes
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- CounterpointP. Moreau · Jul 14, 2026
An LLC can change how you're taxed (e.g. elect S-corp status), but it doesn't erase the underlying tax. The structure is about liability, not tax avoidance.
- SupportM. Kessler · Jul 18, 2026
The IRS explains that an LLC is not a tax classification by itself.
IRS — Limited Liability Company (LLC) page. · read the source