Question: In IRS Publication 3402, Taxation of Limited Liability Company, it states that an LLC can elect to be classified as a S corporation. Does an individual member of an LLC that has elected S corp status have the same protections from personal liability for payroll taxes as an individual member of an LLC that has elected C corp status? Stated differently, does the IRS have to conduct a trust fund investigation to impose personal liability on individual members of an LLC that has elected S corp status?
Answer: Yes, the IRS must conduct the trust fund investigation for a single member LLC that has elected to be taxed as a S-Corp.
If the LLC did not file for S election since the LLC started then there are other factors to consider.