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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2820
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Can an LLC file bankruptcy if is owes state taxes and not pay

This answer was rated:

Can an LLC file bankruptcy if is owes state taxes and not pay them?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Taxes, are dischargeable if they meet the following requirements.

Terry L. :

1. must be income tax

Terry L. :

2. must be from a tax year 3 years before the bankruptcy case is filed.

Terry L. :

3. Must be filed timely, accurately. If late or inaccurate, must have been fixed at least 2 years before the bankruptcy.

Terry L. :

4. Must not have been assessed in the last 240 days.

Terry L. :

If it meets all of these, then it will be dischargeable if the business folds and files bankruptcy.

Terry L. :

Do you have any other questions?

Terry L. :

Thanks

Terry L. :

good luck.

Customer:

does it apply to a states, NH, income taxes?

Customer:

If an LLC folds are the members liable for back state taxes?

Terry L. :

one moment

Terry L. :

Each state is different, and it would depend on how the LLC elected to be taxed. NH May not allow the LLC to disolve until the taxes are resolved. If that is the case, and the tax is pass thru, the members are on the hook for the state tax pass through. It would be best to talk to the attorney who set up the LLC on the logistics of the selection of taxation and dissolution. A tax advisor can also look to see how it was set up as well. Unfortunately, the complexity of the matter dictates that I can't provide you further details.

Terry L. :

Good luc

Customer:

yup...gonna need luck...thanks and have a good week

Terry L. and 3 other Bankruptcy Law Specialists are ready to help you

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