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 Wake
State:
Multi-State
County:
Wake
Control #:
US-0046-CR
Format:
Word;
Rich Text
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FAQ
In order to become an S corporation, the corporation must submit Form 2553, Election by a Small Business Corporation signed by all the shareholders.
Generally speaking, if it's later in the year, wait to form your S Corp until the following year, unless you expect a significant spike in income. If it's earlier in the year, talk to your tax preparer about how much you could save by switching mid-year and see if it's worth it.
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.
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When an LLC elects S status, it is imperative that its operating agreement and other documents conform to the S corporation eligibility requirements. Our counseling is free, and we work at your pace.We meet as many times as you find helpful, and we work with both established and new business owners. Business formation attorney Hank Doyle has assisted LLC's and businesses for over 25 years in selecting the right business type. Each Business Corporation, LLC, LLP and LLLP is required to file an annual report with the Secretary of State. If you qualify, you can make an S Corp election with the IRS to be treated for tax purposes as a partnership rather than a corporation or LLC. The general rule about when to make an s corp election is that it has to be made within 75 days of the beginning of the tax year.