Guidance issued for LLCs seeking tax-exempt recognition
By Dave Strausfeld, J.D.
The IRS on Thursday issued Notice 2021-56 to clarify the standards that a limited liability company (LLC) must satisfy to receive a determination letter recognizing it as tax-exempt under Sec. 501(c)(3). Generally, all the members of an LLC seeking tax-exempt status will have to be tax-exempt organizations themselves or governmental units. The LLC will also have to include specified language in its articles of organization and operating agreement.
Posted by Isabella King, Associate Editor, Wealth Strategies Journal.