I have a question for the EAs out there.
Is it permissible for an EA to set up his or her business through an LLC. Here in California many professionals who are licensed by the state are only allowed to set up a corporation or an LLP, but not an LLC. So I'm curious if the IRS has anything to say about this.
Thanks for any insight you may be able to give.
I'm not a lawyer, but my understanding is that an LLC is a creation under state law. The IRS doesn't care about the entity choice (as long as the appropriate taxes are paid by someone). Whether an EA can operate as an LLC should be determined by state law.
Ira Smilovitz, EA Glenwood Tax Services (not an LLC)
Thanks Ira. I'm a lawyer and there's no prohibition under California law. I was just curious if there might be something in IRS regulations of EAs. Apparently not.
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