I keep hearing an ad on another podcast regarding new language needed in an LLC operating agreement by 12/31/17 to stay IRS compliant. Does anyone know anything about this? Sounds like a bunch of marketing BS, but wondering if there's anything legit about it.
There have been some significant changes in partnership tax law and the way the government will audit these activities (this could possibly impact multi member LLCs as they are taxed as partnerships under federal income tax law).
You will need to be a little more specific about your situation and the changes you read about before it would be possible to know if you are impacted. Most of these provisions have targeted large partnerships which could include large multi member LLCs.
@Christopher Smith , in my case, I have a single member LLC in Kentucky that I'm wondering about. Whether or not I need to contact my attorney to make any changes to the language of the operating agreement.
Any multi-member LLCs I would be involved with would be manager-managed LLCs with sponsors/syndicators and I'm assuming they'd take care of that.
Single member LLCs are totally disregarded for Federal income tax purposes, so normally the so the IRS would have no interest in them. I'll assume that you have not made an election to treat your LLC as a corporation, C or S.
@Christopher Smith , correct. I have not. Sounds like I have nothing to worry about then.