LLC Tax Solutions | LLC Agreements and Stand-Alone Tax Provisions

Due To The Recent Tax Changes, All Existing Operating Agreements Must Be Updated To Meet New Requirements:

Often-Confusing Requirements Include:

  • Only a member can sign an LLC’s tax return
  • A return not signed by a member 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 "partnership representative" on its 2020 IRS Form 1065

Our forms of LLC operating agreements have this language included.

We Make Updating Your Operating Agreement Easy. Our Quick, On-Demand, Web-based Solution Saves You Time & Money.

LLC Agreements And Stand-Alone Tax Provisions