LLC taxed as partnership eligible for 5500-EZ

[R. Butler]

Plan adopted by an LLC covers only the 4 members. The LLC is taxed as a partnership. Are they eligible to file a 5500-EZ? I'm leaning towards no, but its weak lean. Probably more out of caution than anything.

Thanks for any guidance.

[jpod]

The reason the EZ exists is that it is the 5500 filing for a plan not subject to the ERISA Title I annual reporting requirement. So, the Q you are asking is whether the old DOL regulation that says a plan covering only partners in a partnership also applies to LLCs that are taxed as partnerships. That regulation pre-dated the proliferation of LLCs by many years. Frankly, I don't see how that regulation can be interpreted to apply to an LLC, in which case you can't use the EZ. However, perhaps one of our archivists on this Message Board can point to a statement to the contrary by the DOL.

[R. Butler]

Thanks. I agree with you, but I was hoping for some guidance to the contrary. I've searched for a fair amount of time & can't find any.

[Calavera]

Below is an extract from the 5500 manual which, unfortunately, does not provide a definite answer

PRACTICE POINTER:

When there is more than one owner, the type of entity sponsoring the plan determines whether Form 5500-EZ may be filed. There are no specific instructions about the treatment of a limited liability company (LLC) as an entity eligible to file Form 5500-EZ. An LLC elects whether to be treated as a partnership or as a corporation for tax purposes. As noted in the above example, a partnership with no employees may file the Form 5500-EZ, whereas a corporation with multiple owners but no employees may not file Form 5500-EZ; however, it is not clear that an LLC may file Form 5500-EZ simply because the entity elects to be treated as a partnership for tax purposes.