15 Pennsylvania Consolidated Statutes § 8925 - Taxation Of Limited Liability Companies

§ 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. For purposes of the bank shares tax and the mutual thrift institutions tax, a bank, bank and trust company, trust company, savings bank, building and loan association, savings and loan association or savings institution that is a domestic or foreign limited liability company shall be considered an "institution" as defined by Article VII or Article XV of the Tax Reform Code of 1971. 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).

(July 9, 2013, P.L.476, No.67, eff. 60 days)

2013 Amendment. Act 67 amended subsec. (a).

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.

Section: Previous  8914  8915  8916  8921  8922  8923  8924  8925  8926  8931  8932  8933  8934  8935  8941  Next

Last modified: October 8, 2016