New York Updates Guidance on Treatment of Broker-Dealer Status, Disregarded Entities

Peter Faber said he was surprised by New York State’s new position isolating the tax status and actions of a disregarded entity, noting that “most practitioners feel pretty strongly that the actions of a limited liability company are the actions of the owner [and are] disregarded for all income tax purposes.” Alysse McLoughlin agreed, calling the new position a “big break” from prior policy because “if one entity is a broker-dealer, then the whole entity should get that treatment.”