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IRS Issues LLC Tax Exemption Guidance, Seeks State Law Feedback

Oct. 21, 2021, 7:48 PM

The IRS is soliciting feedback on federal tax exemption requirements for limited liability companies and how conflicts with state laws might affect their eligibility.

The Internal Revenue Service on Thursday announced guidance (Notice 2021-56) updating the determination letter process for LLCs to receive tax-exemptions as Section 501(c)(3) nonprofits. Along with articulating their charitable missions, LLCs will need to cite in their articles of organization and operating agreements a contingency plan in the event that any of its members become ineligible for tax-exempt status.

  • The notice will be published Nov. 8, the agency said, and ...

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