Tax Analysts provides news, analysis, and commentary on tax-related topics, including the latest developments affecting treatment of limited liability companies.
A limited liability company (LLC) provides the limited liability features of a corporation, but is a pass-through entity for federal tax purposes. For federal tax purposes, an LLC is generally treated as a partnership; however, it can elect to be treated as a corporation, whether as a C-corporation or, if eligible, as an S-corporation. Limited liability company status is a question of state law – each state has its own enabling legislation, its own requirements, and sometimes unique forms of LLCs, such as series LLCs and low-profit limited liability companies (L3Cs). Internationally, the variations between similar entities in different countries are even greater.
In the United States, LLCs are currently the most popular form of partnerships/passthrough entities. “In 2011 LLCs represented nearly two-thirds of all partnerships; before 2002, general partnerships were consistently the most common type of partnership but represented only 17.8 percent of all partnerships in 2011.” ("Unified Passthrough Reform Misses the Mark")
Tax Analysts consistently and promptly publishes all relevant developments regarding taxation of limited liability companies, whether in the form of court cases and analysis of court cases, IRS guidance, news stories, news analysis, legislation, commentary, or other materials.
