"Check-the-Box" Regs Upheld, So LLC Liable for Employment Taxes

Abstract

In L & L Holding Co., a Louisiana District Court held that entities that were the successive sole owners of a single-member limited liability company (LLC) were liable for the company's unpaid employment taxes because the company failed to make an election to be treated as a corporation under the "check-the-box" regulations. The LLC was treated as a disregarded entity because it failed to make the election under Reg. 301.7701-3.