4 ms·

When you file with the IRS with a LLC, and you are the sole member, the IRS doesn't consider that a 'real' corporation, and you have to take that earnings on yo

When you file with the IRS with a LLC, and you are the sole member, the IRS doesn't consider that a 'real' corporation, and you have to take that earnings on your 1040. Likewise, just because these police organizations are using 501(c)3 to provide a corporate shield, a reasonable judge should say that the shield is unlawful. I kind of get a feeling that national security will eventually be trotted out here.

k2enemy 12y ago
An LLC (limited liability company) is not a corporation. So no, it does not have the tax treatment of a corporation.
- mpyne 12y ago
  I think the general principle still applies though. And even without the tax analogy, acting as an agent of the government does not get rid of the responsibilities of the government in the behavior of their contractor, which is why the government can't simply get around the Fourth Amendment by having a contractor (or allied intelligence agency) do the search for them.
- nitrogen 12y ago
  Last time I checked, an LLC could elect to be seen in various different ways by the IRS (e.g. corporation, disregarded entity, etc.). Unfortunately italicizing one of the words in the expansion of an initialism doesn't really tell us anything about its meaning.
joshuaheard 12y ago
The IRS may not consider an LLC a corporation for tax purposes, but this has nothing to do with whether a court will consider the LLC as an entity that provides its owners with liability protection. Courts do not give IRS classification any weight. Tax liability and liability for other corporate debts are not the same thing. (It is a common misperception, though.) However, that is not the issue here. The ACLU is arguing (rightly) that even though these entities are corporations, they are acting as agents of the government, and thus should be required to follow laws pertaining to government agencies.
DenisM 12y ago
Citation re IRS treatment of LLC? Afaik this s not true.

k2enemy 12y ago

An LLC (limited liability company) is not a corporation. So no, it does not have the tax treatment of a corporation.

mpyne 12y ago
I think the general principle still applies though. And even without the tax analogy, acting as an agent of the government does not get rid of the responsibilities of the government in the behavior of their contractor, which is why the government can't simply get around the Fourth Amendment by having a contractor (or allied intelligence agency) do the search for them.
nitrogen 12y ago
Last time I checked, an LLC could elect to be seen in various different ways by the IRS (e.g. corporation, disregarded entity, etc.). Unfortunately italicizing one of the words in the expansion of an initialism doesn't really tell us anything about its meaning.

joshuaheard 12y ago

The IRS may not consider an LLC a corporation for tax purposes, but this has nothing to do with whether a court will consider the LLC as an entity that provides its owners with liability protection. Courts do not give IRS classification any weight. Tax liability and liability for other corporate debts are not the same thing. (It is a common misperception, though.) However, that is not the issue here. The ACLU is arguing (rightly) that even though these entities are corporations, they are acting as agents of the government, and thus should be required to follow laws pertaining to government agencies.

DenisM 12y ago

Citation re IRS treatment of LLC? Afaik this s not true.