An LLC is considered a corporation if:
- It has chosen to file, under Internal Revenue Service (IRS) rules, as a corporation; or
- It has publicly traded shares.
An LLC is considered a partnership if:
- It has chosen to file, under IRS rules, as a partnership; or
- It has made no choice, under IRS rules, as to whether it is a corporation or partnership.
If an LLC is considered a corporation, it is prohibited from making contributions to political committees or to candidates, although it is permitted to establish a separate segregated fund. If it is considered a partnership, it is subject to the contribution limits for partnerships.
Single member LLC
If a single member LLC does not elect corporate tax treatment, it may make contributions; the contributions will be attributed to the single member, not the LLC.
Notifying recipient committee
An LLC must, at the time it makes a contribution, notify the recipient committee:
- That it is eligible to make the contribution; and
- How the contribution should be attributed among members.
This requirement will prevent the recipient committee from inadvertently accepting an illegal contribution.