IRS Issues Guidance on LLCs as 501(c)(3) Entities

Nonprofits often use limited liability companies (LLCs) when they want to form subsidiaries to, for example, launch a new service or joint venture. However, federal regulations for tax-exempt organizations don’t specifically address LLCs. This makes new guidance from the IRS on the requirements an LLC must satisfy to be deemed tax-exempt welcome news. Guidance gap…