Well, there is no immediate respite from the tax chaps, so don't try running from those guys.

They have three options.
-They can file returns either as a corporation, a partnership or sole proprietorship. Certain llc'sare put under the same category and taxed alike.

These LLCs are the ones that have been formed under a State or Federal statute or under the statute of a federally recognized Indian tribe wherein they have been described either as a corporation, body corporate or body politic or a joint stock association. The same is true of businesses owned by state, foreign governments or entities described in section 1.892.2-T. Any Association formed under Regulations section 301.7701-3 is also seen as a corporation by the federal government as are insurance companies.

Form 8832 has to be filled if it is not a corporation and elect to conduct business either as a corporation or a partnership. at least 2 persons have to be present to constitute a partnership or a corporation. Similarly, a business entity with a single member can choose to be classified either as an association taxable as a corporation.

the default rules come into play If an LLC does not File Form 8832. if a corporation has only two members, it has to file taxes as a partnership and an LLc likewise has to file an application for sole proprietary fit has only one member.

so, it is better to take help from those friendly tax consultants and get to know the rules better and this helps us a lot.