What is backdating

Any advice anyone can give on all this will be very much appreciated.

Can anyone tell me why, if it was the intention from the outset that these entities would be held within the S-corp holding company, the LLC operating agreements were not created with that 100% S-corp ownership in the first place, rather than being created with 50/50 ownership of husband and wife?If those initial two LLCs had never been split apart, the owners would not have the tax problem they now face.At this point, is it just as impossible for us to put the two initial LLCs that were split out from the original S-corp, back into the original S-corp as if no change had been made from a tax preparation point of view?' data-inline-edit-type='wysiwyg' data-inline-edit-url='/answers/605617' id='inline_edit_answer_605617_body' Fraudulent backdating to provide a tax advantage is illegal.However I don't think backdating to show proper intent and substance is necessarily wrong.Was this an oversight, was it poor planning, or is there something I just don’t understand?In fact, if no operating agreement had ever been made, am I correct in thinking that this problem would not exist?The LLCs would have been “disregarded entities” with the owner being the holding company, 100%.This would have reduced tax return preparation time for year 2012 by making it possible to file just one consolidated return, and this arrangement would have made it possible for the profits and losses of these six entities to be netted against each other within the holding company S-corp.For example, were W9's filled out with S-Corp EIN as required?Was all monies run through S-Corp or were individuals the recipients?

282 comments

  1. Lawyers who were trained in commonwealth jurisdictions may have an ingrained concept that backdating a document is generally improper, if not illegal.

  2. Backdating is a much misunderstood and largely unexplored subject. It involves a wide range of conduct, some of which is an integral part of everyday law pract

  3. Nov 10, 2010 Before Lehman Brothers imploded, before Bernard L. Madoff’s arrest and before the global economy’s near-collapse, there was the backdating of stock.

  4. Oct 05, 2011 In one of the Steve Jobs obituaries there is this reference to the backdated options scandal at Apple. In 2001 he was granted stock options amounting to 7.

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