Every LLC lawyer should have, at the very least, a solid basic understanding of the TEFRA partnership audit rules, which will apply until the end of 2017; the new Bipartisan Budget Act rules, which will apply thereafter; and how to deal with these rules in the operating agreements of multi-member LLCs taxable as partnerships. Below is a link to a very practical new blog post by Lou Vlahos about the new regs.
I’ve just stumbled across the blog post under the link below. The post was published in September 2015. I have not posted about this post previously, and I generally post only about current developments. However, I’m covering it in this post because it’s significant for at least a significant number of LLCs. It addresses the issue of who, for federal tax purposes, may sign the federal tax return of an LLC managed by another LLC.
For those of you who follow New Hampshire taxation, the New Hampshire Department of Revenue Administration document under the following link will provide a useful summary of NH 2016 tax changes:
Here, under the link below, is another recent blog post about the new Treasury temporary regulations governing partnership opt-ins to the new Bipartisan Budget Act partnership audit rules.
For readers of my posts who are interested in New Hampshire state tax, here are recent New Hampshire tax developments.
In the discussion of goodwill valuation under the link below, Peter Mahler provides an excellent discussion of goodwill valuation that is central of the above case. The case is a NY case, but the doctrine on which it is based applies also in many other jurisdictions.
Here is the link:
TAX COURT CASE ABOUT VALUING A MINORITY INTEREST HELD BY A DECEDENT IN A PARTNERSHIP FOR ESTATE PLANNING PURPOSES
Under the link below is an excellent summary by Lou Vlahos of the FarrellFritz law firm about a recent Tax Court case on how to value a minority interest held by a decedent in a partnership for estate tax purposes.
Here’s the link:
A current client of mine e-mailed me a link from a LegalZoom web page stating that S corporations are better than LLCs for statutory asset protection purposes. The LegalZoom web page is totally wrong. It is based on the belief that S corporation is a legal term. It’s not. LLCs are business entities. S corporations are tax entities.
It amazes me that LegalZoom could be so stupid as to refer to LLCs as “limited liability corporations.”
The link below illustrates the dangers of forming entities through LegalZoom. One of these days, LegalZoom is going to face a huge lawsuit because of advice like the advice under the link below.
Here’s the link and the client quote: “I found this other link that makes it look like s-corporations are better for liability reasons (not sure about this, only asking the question)?”
Every LLC formation lawyer should have at least a basic understanding of the federal and state taxation of LLCs and their members. The IRS has just issued a new publication, designated Publication 3402, entitled “Taxation of limited liability companies.” There are a number of key LLC federal tax issues that this publication does not address in any detail—e.g., how to determine whether the Self-Employment Tax applies to members of multi-member LLCs taxable as partnerships. However, it is still a very useful—and, of course—authoritative—overview of its subject matters—for example, with respect to the tricky issues concerning LLC tax IDs (“employer identification numbers”).
Here is the link to Publication 3402:
Are any of your LLC or estate planning clients moving from your home state to another state and do they want to avoid taxes in one or the other state? If so, you may find the new Lou Vlahos post under the following link useful. Lou’s post is based on New York law, but I believe it will be useful to you in interpreting your state’s law even if your state is not New York.
Here’s the link: