In most instances, a major reason for forming limited liability companies (LLCs) is to obtain the income tax treatment of a partnership. Although the IRS rulings issued to date generally support that outcome, careful attention is needed in structuring an LLC to assure taxation as a partnership.
Harl, Neil E.
"Limited Liability Companies: Income Tax Treatment (Second of three parts),"
Agricultural Law Digest: Vol. 4
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol4/iss13/1