Beginning January 1, 2018, all Minnesota Limited Liability Companies (LLCs) will be subject to the new rules under Chapter 322C of the Minnesota statutes. The new law pertaining to LLCs may potentially bring significant changes to governance and management, operating agreements, and other aspects of the business.
If you organized your business as a LLC prior to August 1, 2015, you should consult with your attorney to ensure your LLC documents properly continue to structure the business relationship in accordance with the intent of all members. From a tax perspective, here are some items you should consider:
- Allocations of profits and losses
- Electing a partnership representative to handle tax matters
- How the LLC intends to approach the new IRS Audit Rules & Regulations
- Who has the rights to tax and other LLC information
If you have any questions or would like additional information, please contact your trusted advisors at Lurie, LLP.