§ 57C-10-06. Income taxation. - North Carolina Statutes

§ 57C‑10‑06. Income taxation.

A limited liability company, aforeign limited liability company authorized to transact business in thisState, and a member of one of these companies are subject to taxation underArticle 4 of Chapter 105 of the General Statutes in accordance with theirclassification for federal income tax purposes. Accordingly, if a limitedliability company or a foreign limited liability company authorized to transactbusiness in this State is classified for federal income tax purposes as a Ccorporation as defined in G.S. 105‑131(b)(2) or an S corporation asdefined in G.S. 105‑131(b)(8), the company and its members are subject totax under Article 4 of Chapter 105 of the General Statutes to the same extentas a C corporation or an S corporation, as the case may be, and itsshareholders. If a limited liability company or a foreign limited liabilitycompany authorized to transact business in this State is classified for federalincome tax purposes as a partnership, the company and its members are subjectto tax under Article 4 of Chapter 105 of the General Statutes to the sameextent as a partnership and its members. If a limited liability company or aforeign limited liability company authorized to transact business in this Stateis classified for federal income tax purposes as other than a corporation or apartnership, the company and its members are subject to tax under Article 4 ofChapter 105 of the General Statutes in a manner consistent with thatclassification. This section does not require a limited liability company or aforeign limited liability company to obtain an administrative ruling from theInternal Revenue Service on its classification under the Internal Revenue Code.(1993, c. 354,s. 1; 2001‑387, s. 101.)