25Jan 2022 by Pat Geddie
The Different Ways an LLC Can be Taxed a Look at the Check-The-Box Regulations

The Different Ways an LLC Can be Taxed a Look at the Check-The-Box Regulations

Tax Law
By Anthony Diosdi Probably one of the most frequent questions any tax professional receives from his or her clients is how should my limited liability company (“LLC”) be taxed. As usual in any area of tax planning, there is no one-size-fits-all approach. Each individual’s circumstances must be carefully considered in determining how an LLC should be taxed.An LLC is an entity formed under state law. Once an LLC is formed under state law, a determination must be made for federal (and in some cases for state tax purposes) how the LLC will be taxed. The Income Tax Regulations typically treat an LLC that has a single owner as a “tax nothing.” This means that a single-owner LLC is disregarded for tax purposes and treated as an extension of its owner.…
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15Aug 2019 by Pat Geddie
Conducting Business Abroad? The Check-the-Box Regulations and Cross Border Tax Arbitrage May Offer Significant Tax Savings Opportunities

Conducting Business Abroad? The Check-the-Box Regulations and Cross Border Tax Arbitrage May Offer Significant Tax Savings Opportunities

Tax Law
By Anthony Diosdi It has always been important, but often difficult to determine the proper characterization of entities, foreign or domestic, for U.S. income, estate, and gift tax purposes. Under older law, the U.S. federal tax classification of an entity depended on the number of corporate characteristics  (limited liability, continuity of life, centralized management) it possessed. The 1997 check-the-box regulations (Regs. Sections 301.7701-1, 2, and 3) have brought substantial certainty and flexibility to this endeavor. A relatively comprehensive list of foreign entities will be treated as per se corporations, and, unless an election to the contrary is timely filed, any other foreign organization is to be treated as a partnership if it has two members (at least one of whom has limited liability) or disregarded as an entity separate from…
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