@Doug_L stated
"If you're concerned about the answer mentioning partner and not member, I'd like to point out that
IRS Publication 541 (March 2022) states:
A domestic LLC with at least two members that doesn't file Form 8832 is classified as a partnership for federal income tax purposes."
No one is concerned about that at all. I specifically indicated in my previous response that those words are used interchangeably sometimes when an LLC is taxed as a partnership.
There are many issues where there is no guidance from the IRS on specific areas. This is done by design when specific issues hinge on the facts and circumstances of the specific taxpayer.
As stated previously, the IRS will generally frown on an interest in a partnership that is less than 1%; this was also noted in my previous reply.
And once again, there are differences between what is allowed for state law purposes and what is allowed for federal law purposes.
We have provided our thoughts on the matter and you either need to make a decision on your own, or better yet, get guidance from an attorney as was also noted previously.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
