File form 8832 or not

[cientax]

Have a newly formed LLC with husband and wife members. They filed the articles of organization and have received their charter. Now they want to be treated as S-Corp. We called the IRS entity line and they said that the Form 8832 must be filed first then make the S-Corp election on 2553. However, the instructions on the 8832 says not to file the 8832 if wanting to make the S-Corp election.

We are trying to apply for EIN for the LLC but to make the S election, wouldn't we need to check the box on the SS-4 for a corporation then make the S election?

If we check the box for corporation, we cannot enter LLC at the end of the name of the entity. The EIN entity section is no help.

[Jake]

File the SS4 with corporation box marked (S corp). In the space next to the other line put multi-memeber LLC. (Do not mark the other box). Once you have the EIN file the 2553 only. Do not file Form 8832 it is no longer required and could cause some confusion. Hope that helps Good luck

[cientax]

File the SS4 with corporation box marked (S corp). In the space next to the other line put multi-memeber LLC. (Do not mark the other box). Once you have the EIN file the 2553 only. Do not file Form 8832 it is no longer required and could cause some confusion. Hope that helps Good luck

Have you tried the new format that the IRS now has online for applying for EIN? If you check the box for S-Cor or Corp, it will not let you enter LLC after the entity name and it tells you you can not enter LLC if you checked S-Corp or Corp.. There is now a separate check box for each of the following LLC, for S-Corp and Corp boxes.

What one lady at the entity section told me the other day was to get the EIN and check the box for Corp then make the S election using the 2553, but this morning another lady there told me we had to file the 8832 then make the S election on 2553. But the 8832 instructions say not to file 8832 if making S election.

[Jake]

I just tried the new system for the first time. I chose LLC and then put in two members. I then got a message that the default entity would be a partnership and that I could elect 1120 treatement by filing F-8832 OR 1120S treatment by filing out F-2553. I have not used the Form 8832 for a couple of years and have succesfully elected S. Corp satus on dozens of LLC's. By the way I noticed that on the new system it will not allow you get an EIN for a single member LLC with employees even if you plan on electing out sole prop. treatment. Instead they require you to call and get two EIN numbers. That is just asking for problems.

[GeneInAlabama]

Good ole IRS. Leave it to them to confuse things.

[cientax]

I just tried the new system for the first time. I chose LLC and then put in two members. I then got a message that the default entity would be a partnership and that I could elect 1120 treatement by filing F-8832 OR 1120S treatment by filing out F-2553. I have not used the Form 8832 for a couple of years and have succesfully elected S. Corp satus on dozens of LLC's. By the way I noticed that on the new system it will not allow you get an EIN for a single member LLC with employees even if you plan on electing out sole prop. treatment. Instead they require you to call and get two EIN numbers. That is just asking for problems.

Thank you, I just did it the way you responded and that's what I was looking for.

Two weeks ago they had even a different new format that was even more confusing but they have since changed the format to make it easier. I did complain at that time and maybe that's why they changed the format. Thanks again.