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Navigating tax complexities: Craft partnership agreements and LLC operating agreements with precision
September 17, 2024
Categories: LLC, Operating Agreements, Schedule K-1
Partnerships are often used for business and investment activities. So are multi-member LLCs that are treated as partnerships for tax purposes. A major reason is that these entities offer federal income tax advantages, the most important of which is pass-through taxation. They also must follow some special and sometimes complicated federal income tax rules. Governing documents A partnership is governed by a partnership agreement, which specifies the rights and obligations of the entity and