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Senior Advisor

LLC Not Limited Partnership - IRS

Here's an interesting change in IRS policy on how to treat members of an LLC.  (Naturally, the IRS did not change it's mind gracefully.)

 

http://www.extension.iastate.edu/agdm/articles/harl/HarlApr12.html 

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Honored Advisor

Re: LLC Not Limited Partnership - IRS

Thanks for this read Jim,

 

I have maintained for some time that LLC's are basically general partnerships with some liability protection.  So far the liability issue has not been challenged  as much as I first thought it might.

There has been some attempt to sell them as more, and of course USDA decided to treat them as corporations for entity determinations(at least locally), but the federal tax handling has been as that of a General partnership.

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