Partnerships & Limited Liability

There is so much red tape! How do we make informed decisions about Partnerships? How do we navigate through all of the rules and regulations to figure out the best tax strategies for our business?

Partnerships & LLP TaxationPartnerships and Limited Liability Companies are often chosen because they provide flexibility, are low maintenance, have favorable tax treatment and most importantly, limited liability protection to keep your personal assets safe. Although choosing to structure your business as a partnership or Limited Liability Company is often times a good choice, it is not always the best choice because of the special rules and exceptions that go along with those structures. The complexity of these rules should not discourage you from forming an entity that could provide economic benefit to you and your investors, but should make you diligent in your efforts to choose the entity structure that is right for you and your company.   

At Encore Partners LLP we have significant experience with flow-through entities and understand the tax code intricacies relating to Partnerships and Limited Liability Companies. Proactive planning in the early stages of your partnership/LLC formation is crucial and you may find that having the right exit strategy is just as important. We will provide you with comprehensive guidance to help you consider all potential economic and tax consequences. We are also experienced with subchapter S corporations and provide clients with effective counsel on the prudence of utilizing an S corporation structure for certain circumstances. How you choose to structure your entity will determine several factors in how your company operates, now is the time to seek out guidance.

We can actively advise you on:

  • Income tax return preparation
  • Entity and business structure planning
  • Review of partnership and LLC operating agreements
  • Partnership mergers, acquisitions, and divisions
  • Multi-Tiered structuring, formation and dissolution of entities
  • Real estate transactions
  • Joint ventures Partnership tax accounting
  • Tax basis and FMV adjustment elections
  • Like-Kind Exchanges (partnership tax-deferred, Section 1031)
  • Capital gains and losses
  • Passive activities issues
  • Tax basis and FMV adjustment elections
  • At-Risk issues
  • Capital accounts
  • Special allocations
  • Recourse and nonrecourse debt allocations
  • Substantial economic effect
  • Phantom tax gain
  • Withholding rules
  • Schedule K-1s
  • Partnership debt discharge (CODI)
  • Recapitalization
  • Characterization
  • Redemption and retiring partners interest
  • Deemed sale rules
  • Multistate operations and issues
  • International structuring and issues
  • Succession planning
  • Other tax deferrals and tax credits
  • IRS and state authorities audit representation