Will my LLC be taxed as an S-Corp or S-Corp? How?

An LLC can chose to be taxed as as partnership/sole proprietorship, a C-corp or an S-corp. the most common tax reasons for choosing one form or the other are: Most small businesses chose partnership/sole proprietorship taxation because it eliminates double taxation and it is very flexible. If a small business earns profits from its employees who aren't owners or from capital assets, S-corp taxation avoids double taxation and social security tax on none personal service income. The downside is S-corps are not flexible, the ownership and profit/loss distribution must follow a strict set of rules. If a small business wants to attract minority shareholders, C-corp taxation is necessary because minority shareholders usually don't want the possibility of getting taxable income without a cash distribution. There is double taxation in C-corp taxation. There are also non-tax reasons for choosing the various forms. The S-corp form requires that voting rights are proportional to ownership, while partnership/sole prop and C-corp forms allow a minority owner to control the business. C-corp income is only reported as personal income if the cash is received by the owner, partnership/sole prop and S-corp income is reported as personal income regardless of whether it's distributed (if the owner pays alimony based on personal income and she/he needs to keep $250,000 a year in the business to buy equipment or for working capital, she/he probably doesn't want to count that $250,000 in the base for determining alimony). If you're situation is more complex than the above or you don't understand the above, then you need to talk to a tax attorney.

If you will be the only owner of your business (no partners or investors) and you create an LLC, the IRS will tax you as a sole proprietor unless you elect to be taxed as an S corporation. If there are multiple members of your LLC (sort of like multiple shareholders) you may elect to be taxed as a partnership or as a corporation. Many feel it is more advantageous to be taxed as a partnership because of greater flexibility.

It is quite difficult to answer your question on the dearth of facts which you are provided. I would very strongly suggested to seek both legal and accounting counsel prior to the time you undertaken enterprise. There are various forms of limited liability entities which you may select from, and the best choice is going to be determined by the details of what you are doing and what you plan for the future.