A new bill was enacted affecting tax liability procedures for limited liability companies, limited partnerships, limited liability partnerships, and limited liability limited partnerships. The new law is named HB 1022 and applies the present tax liability procedures for corporations to limited liability companies, limited partnerships, limited liability partnerships, and limited liability limited partnerships. The present law states that the representatives of a corporation accountable for submitting tax returns and paying any taxes due are individually responsible for any failures to file or make payments. HB 1022 authorizes the corporation’s officers to opt to not be individually responsible and instead acquire a surety bond or a certificate of deposit as security for the payment of taxes due in a quantity equivalent to the anticipated yearly gross receipts multiplied by the applicable sales or excise tax rate.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.