S Corp Status For Llc In Wake
State:
Multi-State
County:
Wake
Control #:
US-0046-CR
Format:
Word;
Rich Text
Instant download
Description
The Resolution form assists corporations in Wake in electing S Corporation status, an option that allows pass-through taxation, reducing the corporation's overall tax liability. This form outlines the necessity for corporate officers to perform actions required for this election, including filing documents with the Internal Revenue Service and state tax authorities. Key features include sections to authorize officers to act, ratification of prior actions taken, and the formal declaration of intent by the board of directors. For attorneys, this form provides a clear framework for advising clients on tax status changes. Partners and owners utilize it to formalize decisions that impact their tax obligations and business structure. Paralegals and legal assistants benefit from straightforward instructions for editing and filling out the document, ensuring compliance with legal standards. This resolution can be crucial for enhancing financial strategy and ensuring appropriate corporate taxation in Wake.
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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.
