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Taxation of limited liability companies - 15 Pa. Cons. Stat. § 8925

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     § 8925.  Taxation of limited liability companies.
        (a)  General rule.--For the purposes of the imposition by the
     Commonwealth of any tax or license fee on or with respect to any
     income, property, privilege, transaction, subject or occupation,
     a domestic or foreign limited liability company that is not a
     domestic or qualified foreign restricted professional company
     shall be deemed to be a corporation organized and existing under
     Part II (relating to corporations), and a member of such a
     company, as such, shall be deemed to be a shareholder of a
     corporation. Such a company may elect to be treated as a
     Pennsylvania S corporation, and its members shall be deemed
     shareholders of such a corporation, only if the company
     satisfies the conditions for electing that status. For purposes
     of the corporate net income tax and the capital stock and
     franchise tax, such a company shall be considered a
     "corporation" and an "entity" as defined in Articles IV and VI
     of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
     Reform Code of 1971, and, if such a company is not required to
     file a Federal corporate income tax return, these taxes shall be
     computed as if such a Federal return had been filed. Nothing in
     this subsection shall impair or preempt the ability of a
     political subdivision to levy, assess or collect any applicable
     taxes or license fees authorized pursuant to the act of December
     31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
     Act, on any company which elects limited liability company
     status in accordance with the provisions of this chapter.
        (b)  Reorganizations.--Every domestic or foreign limited
     liability company, regardless of whether it is also a domestic
     or qualified foreign restricted professional company, shall be
     deemed to be a corporation for purposes of applying the
     provisions of section 303(a) of the Tax Reform Code of 1971,
     with respect to a "reorganization" as defined in that section.
        (c)  Cross reference.--See section 8997 (relating to taxation
     of restricted professional companies).

        1997 Partial Repeal.  Section 35.1(b) of Act 7 of 1997
     provided that section 8925 is repealed insofar as it is
     inconsistent with Act 7.
        Cross References.  Section 8925 is referred to in sections
     8995, 8997 of this title.

Last modified: November 27, 2007