One of the advantages and attractions of an LLC is called pass-through taxation. Meaning that the profits generated by the LLC will “pass-through” to its member/s. Your accountant will issue each member with a K1 who then reports the additional income on their personal taxes. Checking with your state is always advisable as although LLCs are pass-through entities, there are several types of state-level tax that may still apply to your LLC and should be researched.