The primary tax implications of having an LLC taxed as an S Corporation are twofold. First, the profits and losses of the company will be treated as pass-through income to the owners, meaning that any income generated by the business will be reported on their personal tax returns. This can result in significant savings for those who have high marginal tax rates. S Corporations are subject to double taxation on corporate earnings – meaning that both the corporation itself and its shareholders must pay taxes on these earnings. However, this is offset by certain deductions available to corporations, such as self-employment taxes and capital gains taxes.