Ultimately when trying to understand the best tax scenario for your business, you should seek the guidance of a CPA. The IRS does not have a separate tax classification for LLC's.  LLC's are managed by a member manager or manager-managed structure.
The benefit is when forming an LLC, you can choose how you wish to be taxed:
Sole Proprietor – This tax scenario applies to single-member LLC's and the IRS refers to this as a disregarded entity. The income and expenses are subject to self-employment tax.
Partnership – This tax scenario applies to Multiple-Member LLC's with two or more members. This allows for the profits and losses to pass through to each member.
C Corporation – This type of taxation is considered to be double taxed. C Corporation taxation is when the LLC is paying taxes on its profits and then any profits are distributed to the members and thus the members pay taxes as well. In order for an LLC to choose this classification, it must file Form 8832 with the IRS.
S Corporation – An LLC taxed as an S Corporation is not taxed on its profits, but the profits are passed to the individual owners/members and double taxation is eliminated. To file as an S Corporation, Form 2553 must be filed with the IRS.