Form with which a corporation may resolve to alter its corporate status top that of a subchapter (S) corporation.
S Corp Status For Llc In Illinois
State:
Multi-State
Control #:
US-0046-CR
Format:
Word;
Rich Text
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FAQ
Because of the one-class-of-stock restriction, an S corporation cannot allocate losses or income to specific shareholders. Allocation of income and loss is governed by stock ownership, unlike partnerships or LLCs taxed as partnerships where the allocation can be set in the partnership agreement or operating agreement.
LLC taxed as an S corporation First, an LLC would need to elect to be taxed as a corporation by filing Form 8832, Entity Classification Election. After that, an LLC can then file a Form 2553, Election by a Small Business Corporation, to elect tax treatment as an S corporation.
An S Corp is a tax status (totally separate deal). You can elect to be taxed as an S Corp either as an LLC or as a Corporation. If you're self-employed I recommend the LLC; the corporation only makes sense if you're going to be hiring a ton of folks, taking on investors, etc.
More info
The LLC has no Illinois income tax filing requirements. To form an S Corp, you have to: Set up an LLC with your state if you haven't already.File form 2553 with the IRS. If your company qualifies for treatment as an SCorp, the first step technically is filing Form 8832. To organize an Illinois Limited Liability Company, complete and submit LLC-5.5, Articles of Organization. This system allows you to form or register a Not-for-Profit, Domestic Corporation, or Limited Liability Company or terminate an LLC online. Form an S corp in Illinois in 7 steps to avoid double taxation on corporate income. S corporations must complete Schedule K and Schedule K1 when filing Form 1120ST. To elect "S" Corporation status under the Internal Revenue Code, you'll have to file IRS Form 2553. If you've already formed an LLC or corporation, file Form 2553 with the Internal Revenue Service (IRS) to designate S corp taxation status.