What is Pearce Bespoke's taxable status according to its management?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke Franchising, LLC ("Company") was incorporated on November 5, 2021, in the State of North Carolina as a Limited Liability Company.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 FDD, Pearce Bespoke Franchising, LLC was incorporated on November 5, 2021, in the State of North Carolina as a Limited Liability Company (LLC). This is according to Note 1 in the financial statements.
As an LLC, Pearce Bespoke's taxable status depends on elections made by the company and the number of members. By default, an LLC with one member is treated as a sole proprietorship for tax purposes, while an LLC with multiple members is treated as a partnership. However, an LLC can also elect to be taxed as a corporation (either S-corp or C-corp).
The FDD does not explicitly state which tax election Pearce Bespoke has made. A prospective franchisee should seek clarification from Pearce Bespoke regarding its specific tax status and the implications for franchisees.