Llc Formation Tax Implications

Summary

Forming an LLC involves understanding its tax implications, such as pass-through taxation where profits are taxed on personal income. S-corp status is a U.S. Concept and not applicable in Serbia. Consider local regulations for LLC registration.

Full Conversation

I'm thinking of forming an LLC for my freelance consulting business. What are the tax implications? Can an LLC elect S-corp status, and when would that make sense financially?
Forming an LLC in Serbia has different tax implications than in other countries. Here are some general points to consider:
- LLC Taxation: LLCs are typically taxed as pass-through entities, meaning the profits are taxed on your personal income tax return.
- S-Corp Status: This is a U.S. concept and not applicable in Serbia.
Would you like information on how to register an LLC in Serbia?