May 1, 2008

Pass-through Entities with Nonresident Owners Should Consider Electing Taxation As Oregon C Corporations

Matthew Bender & Company, Inc
Joshua E. Husbands

Oregon law generally follows federal tax rules regarding the taxation of pass-through entities. The partnership, limited liability company ("LLS"), or S corporation is not taxed at the entity level; items of income and loss pass to the partners, members, or shareholders. When an Oregon partnership, LLC, or S corporation has nonresident owners, in some instances the overall taxation of the entity's operations may be minimized by electing to be taxed as an Oregon C corporation.

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