bungee9 Posted April 9, 2022 Report Posted April 9, 2022 My client wants to change to S-corp from LLC after one year of registering. In this case, I wonder if I need to file both forms 8832 and 2553. I filed an LLC tax return for 2021 and faxed form 2553 in February 2022. But I have not received the S-corp approval letter from IRS yet. Quote
Lion EA Posted April 9, 2022 Report Posted April 9, 2022 An LLC files only 2553. Make sure your client is running the business like a corporation, reasonable compensation on payroll, etc. (What's an LLC tax return?) Quote
bungee9 Posted April 9, 2022 Author Report Posted April 9, 2022 7 hours ago, Lion EA said: An LLC files only 2553. Make sure your client is running the business like a corporation, reasonable compensation on payroll, etc. (What's an LLC tax return?) Right, it should be a Partnership tax return, not an LLC. I have already faxed form 2553 and set the effective date of s corp as of January 1st, 2022. However, this LLC was registered in 2021. My question is if I filed as a partnership in the first year, but if I get an S CORP approval, can I file as an S CORP in the second year without having to file a Form 8823? Quote
Lion EA Posted April 9, 2022 Report Posted April 9, 2022 If already a MMLLC, then NO Form 8823. Just the 2553. Quote
Lion EA Posted April 9, 2022 Report Posted April 9, 2022 They're already an entity, MMLLC being taxed as a partnership by default. So they only have to elect to be taxed as an S-corporation, only have to CHANGE their entity for tax purposes. Quote
bungee9 Posted April 10, 2022 Author Report Posted April 10, 2022 20 hours ago, Lion EA said: They're already an entity, MMLLC being taxed as a partnership by default. So they only have to elect to be taxed as an S-corporation, only have to CHANGE their entity for tax purposes. Thank you for your response. Quote
WITAXLADY Posted April 11, 2022 Report Posted April 11, 2022 a LLC is a limited liability company = that gives you an entity with hopefully some protection - it's own EIN, rather than the personal soc sec, and must operate as a separate entity to not be as liable, just like a s corp. Unless more than 1 member, it is filed as a Sch E,C,F on the taxes. More than 1 member - unless H/W - if community property state - file as partnership or S corp. Easier in WI to do a LLC and then elect S Corp status as they become profitable than form C and elect S My way of seeing it.. D Quote
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