Due To The Recent Tax Changes, All Existing Operating Agreements Must Be Updated To Meet New Requirements:
Often-Confusing Requirements Include:
- Only a “member manager” can sign an LLC’s tax return
- A return not signed by a “member manager” is regarded as ‘invalid’
- The 3 year statute of limitations does not apply to ‘invalid’ returns
- These signing requirements leave LLC owners at risk and exposed to unforeseen, additional liability
Unfortunately, a one-sentence fix/update is no longer feasible and existing operating agreements are now obsolete.
So What Are LLC Owners To Do?
A multi-member LLC taxed as a partnership should have an operating agreement with language:
• Authorizing a "member manager" to sign its IRS Form 1065
• Designating a "tax matters partner" on page 3 of its 2017 IRS Form 1065, and
• Designating a "partnership representative" on its 2018 IRS Form 1065
Our forms of LLC operating agreements have this language included.
Who We Are
We are former judicial law clerks committed to providing LLC operating agreement forms written clearly, without “legalese.”
We have the experience and expertise to provide you the guidance you need to satisfy the new tax rules.
Our forms are truly unique and the rules are complex and confusing!
Don’t tackle it alone. We are here to help make it easy!