JD Supra

A Narrow Aspect of the Check-the-Box Regulations that Deserves Some Press – Changing an Entity’s Tax Classification From That of a Partnership to That of an S Corporation

More than two decades ago, the Service announced its intention to consider simplifying the entity classification rules in Notice 95-14. It stated: “The Internal Revenue Service and the Treasury ...
JD Supra

Unforeseen Tax Consequences Arising From an Elective Change in Entity Classification

The Tax Court has previously held that a partner who contributes his own note to a partnership in exchange for a partnership interest takes no basis in the interest and their capital account is not ...
Smart Business Magazine

Your company’s business classification is worth another look

It can be the case that companies are operating under an inferior business classification — an issue that’s more common than many would think. “They might have chosen a classification as a startup ...
Houston Chronicle

Can an LLC Choose to Be Taxed Differently Every Year?

For federal income tax purposes an LLC, or limited liability company, is considered a disregarded entity. In effect, the LLC does not exist under the Internal Revenue Code. Despite this fact, a ...
Houston Chronicle

The IRS Forms Required for an LLC Without Employees or Earnings

A limited liability company (LLC) is a legal business structure, but the IRS does not recognize an LLC as a classification for tax purposes. The IRS considers LLCs a disregarded entity for tax ...