Re: What are the problems with an LLC as a professional?
 

Ok so as a single entity it probably wouldn't work out. However, I have a number of guys who would likely be willing to join in an LLC in a partnership, and both parties would be willing to go percentages on profits. I knew that LLCs were essentially non-entities when it was just a single owner. I'm also assuming that only paying taxes on a working wage deemed as reasonable by the IRS is pretty much impossible if only because of the business we're in, and there being no previous precedent nor any real metric they could use.

If there are more than 1 of us assuming we're of equal competence, there are going to be a number of benefits as I see it.

Less tilt: While playing staked almost everybody plays a much better game.
Less variance: Assuming we're of roughly equal skill and playing time our combined income stream will be more moderate.
Additional SEP-IRA contributions.

Also of course we're going to have a number of business deductions.

Re: What are the problems with an LLC as a professional?
 

I may not be correct, but if you file as an s-corp, aren't you getting double taxed? The s-corp still needs to pay taxes for its non-reinvested earnings and you need to pay takes on your salary and dividends. Seems like a bad idea, unless an s-corp has different tax treatment.

What if a group of 5 guys stared an LLC? Would that be OK?

Re: What are the problems with an LLC as a professional?
 

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I may not be correct, but if you file as an s-corp, aren't you getting double taxed? The s-corp still needs to pay taxes for its non-reinvested earnings and you need to pay takes on your salary and dividends. Seems like a bad idea, unless an s-corp has different tax treatment.

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That's the point of an S-Corp.

Single Member LLC and S Election
 

A single member LLC can elect to be a Corporation via Form 8832 like you stated and can also elect to be an S Corporation (Form 8832 + S Election.)

Absent any elections, a single member LLC is a nonentity.

It cannnot be an LP (limited partnership), because by definition a partnership requires more then one partner.