How To Form An Llc Taxed As An S Corporation

See the instructions for form 2553 pdf for all required information and to determine where to file the form.

How to form an llc taxed as an s corporation. In order for the entity to be changed from an llc to a corporation the business will need to file with the state agency who is in charge of corporate filings. Meaning when an llc files form 2553 it s as if the llc files form 8832 electing c corp and then subsequently files form 2553. In order to be taxed as an s corporation the llc must file form 2553. An llc is eligible to receive s corporation status from the irs only if. If the llc is a partnership normal partnership tax rules will apply to the llc and it should file a form 1065 u s.

There are two different ways you can have your llc taxed as a corporation. To be taxed as a corporation use irs form 8832 entity classification election. Hi thomas if after revoking the llc s s corp election you want the llc to be taxed as a c corp you don t need to file form 8832. An llc is not a corporation even if the irs recognizes it as an s corporation for tax purposes. An llc may elect to be taxed as a corporation or as an s corporation.

What is an llc taxed as an s corp. An llc that is eligible to elect s status and timely files an s election form 2553 election by a small business corporation is considered to have made the election to be taxed as a corporation regs. Check with your tax professional to discuss the pros and cons of this election. In order to become an s corporation the corporation must submit form 2553 election by a small business corporation signed by all the shareholders. The election to be taxed as the new entity will be in effect on the date entered on line 8 of form 8832.

To do this the business must file an election on form 8832 by a specific date. Multi owner llc s receive the same tax treatment as a partnership. Llc taxed as s corp. Llc owners can file an irs document known as an election if they want to be taxed as a c or an s corporation. Once the llc is formed choosing how your business is to be taxed is performed by filing an election document form 2553 with the irs.

7701 3 c 1 v c. It is a one owner llc which is treated as a sole proprietorship. It has fewer than 100 shareholders. Return of partnership income. To be treated as an s corporation by the irs an llc must complete and file form 2553.