LLC’s Facing IRS Tax Tsunami
Fred Witt, J.D., LL.M. (in taxation)
Multi-member LLCs are facing an IRS tax tsunami – ready to hit shore.
After the BBA 2015 IRS partnership tax audit changes -- effective in 2018 -- each multi-member LLC taxed as a partnership must update its operating agreement.
II. In 2018, Multi-Member LLCs Taxed as Partnerships Must Comply with New IRS Tax Rules
Beginning in 2018, a tax partnership LLC’s operating agreement should answer the following questions:
- Who is authorized to sign its IRS Form 1065 (due on March 15); and
- Who will be designated as the “Partnership Representative” in that return?
If your operating agreement names a “tax matters partner,” it is obsolete.
III. Easy Online Solution is Available
If you own or advise an LLC taxed as a partnership, your problem is trying to draft new language that reflects these new IRS tax changes.
We have an easy, time-saving, answer.
Working with Professor Howard Abrams, we created an online form store --- www.taxllc.com --- that offers LLC operating agreement forms with the new language for sale and instant download as a Word document. Then, you can review and use all or “cut and paste” any portion you want.
There are six different forms available. The price of each form is based on your use -- $995 for up to five uses or $2,495 for unlimited use.
Four forms are LLC operating agreements -- two are long/complex operating agreements (in Arizona or Delaware) and two are “simple” 20-page operating agreements (in Arizona or Delaware).
If you want to keep an LLC’s existing operating agreement, we have a unique “tax only” exhibit that can be attached to an LLC’s existing agreement. One is “member-managed” and the other is “manager-managed.”
Please check out www.taxllc.com for more details.
Instant download is a click away!
Disclaimer: This material is provided for general information only and is not legal, financial or tax advice. Please consult with your own legal or tax advisor before making any decisions concerning your business or financial matters.