Legal Question in Business Law in New York

Five years ago, I formed an LLC for my business (with tax ID). I now want restructure it as a 501(c)7 organization. Is it possible for me to restructure the existing LLC as such, or do I need to just start from scratch with a new organization?

Asked on 9/25/17, 7:27 pm

1 Answer from Attorneys

Roman Fichman Esq. Law Practice of Roman Fichman Esq.

Though under certain limited circumstances LLCs can be treated as a tax exempt entity, in your case the answer is likely no, unless the entirety of the membership interest in the LLC is transferred to a separate tax exempt entity, as owner of the LLC, that is then able to comply with the relevant IRS guidelines for LLCs as tax exempt entities. This scheme, in it of itself, would contradict the premise of your question.

For help with forming the 501c7 entity please contact me directly

Roman R. Fichman, Esq. │ @TheLegalist

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Answered on 9/25/17, 9:28 pm

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