Is an LLC automatically taxed as an S-Corporation?

The answer to this question is no, you have a choice.  When the LLC is formed, you choose how the LLC is to be taxed.  A single member LLC can be taxed either as an S-Corporation or as a Sole Proprietorship on Schedule C of his personal tax return.  In the first case the LLC will file a Form 1120S tax return and will issue the member a Form K-1, passing the profits or losses to his personal return.  In the second case, the member will report his profit or loss on the Form 1040 Schedule C, so there is only one return to file. A multiumekmber LLC has three choices: (a) file as an S-Corporation, (b) file as a partnership using Form 1065, or (c) each member can file his membership share on Schedule C on his Form 1040.  There are advantages and disadvantages to each choice, but I generally like to avoid Schedule C for my clients since that is the most audited form by the IRS.  However, you should make this decision with the help of a professional.