LLC taxed as S-Corporation - Tax Provisions

[Roberto Westerband]

If an LLC elects to be taxed as an S-Corporation, what are the specific tax provisions that would need to be included in the Operating Agreement in order for that tax status to hold in court down the road? Thanks

[Roberto Westerband]

@Christopher Phillips You hit the nail on the head. By electing to be taxed as an S-corp I'm both a shareholder and an employee. Plus if we take distributions out we do not pay employment taxes. Salary tax is 15.3% which is fine. My partner and I have an LLC taxed as an S-corp and did file the 2553.

My question is more on the actual operating agreement. Hoping that a real estate attorney on this platform can provide some color on whether there needs to be specific provisions in the operating agreement related to an S-corp.