A recent IRS notice has reinvigorated the discussion around utilizing limited liability companies (LLCs) in connection with Section 501(c)(3) tax-exempt organizations, including charitable health systems and related healthcare organizations. More specifically, last October, the IRS released Notice 2021-56 , which provided more definitive guidance on LLCs obtaining their own Section 501(c)(3) tax-exemption, which, although not a new concept, could be a useful tool for tax-exempt healthcare.
Under the IRS “check-the-box” regulations, LLCs have flexibility to elect their federal tax status. By default, an LLC owned by a single organization is a disregarded entity for federal income tax purposes (i.e., disregarded […]
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