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@cherylgolich wrote:

thanks - that's what I thought but their previous CPA filed to have the LLC taxed as an s-Corp with 4 of the 7 members as non residents. 

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Which pretty much voids the S-election, so it is now taxed as a C-corporation.

I think there is a provision to keep the S-election if immediate action is taken to correct the situation, but seeing as how 4/7ths of the members are affected, that doesn't seem like it will work for your clients.