How To Register Llc As S Corp

It s relatively simple paperwork but there are strict deadlines for when it needs to be filed.

How to register llc as s corp. Determine the best state in which to form the new llc. The form 8832 is also filed to change the llc s entity classification. To file for s corporation treatment you ll need to file form 2553 with the irs. Income tax return for an s corporation. Forming a limited liability company requires registering your business with the state and filing articles of organization.

In order to be taxed as an s corporation the llc must file form 255 3. An llc is not a corporation even if the irs recognizes it as an s corporation for tax purposes. A regular c corporation is taxed twice one tax at the corporate level on the corporation s net income and then a second tax when profits are distributed to shareholders. Paying s corp taxes as an llc an llc that elects s status must file form 1120s u s. An llc may file taxes as s corp by completing and filing form 255 3 election by a small business corporation.

Thus an llc with multiple owners can either accept its default classification as a partnership or file form 8832 to elect to be classified as an association taxable as a corporation. Although many llc s choose to go with the default tax format there are some tax benefits available if you choose the s corporation. An llc or limited liability company is a business formed under the tenets of state law. An llc that is taxed as a sole proprietorship still offers limited liability protection. Every member is also required to report all profits they gained on their personal 1040 and schedule k 1 forms to report their share of income credits and deductions.

However they are legally still llcs. You can avoid this double taxation by electing to become an s corporation. An experienced corporate or tax lawyer can help the s corp. Form 1120s is the form used by s corporations to report corporate income. Payments or distributions to members of the llc will be included as compensation to officers in the section for deductions.

The s corporation must choose a name for the new llc and confirm that it s available in the state of formation. You can choose to be taxed as a c corporation or as an s corporation. In order for the entity to be changed from an llc to a corporation the business will need to file with the state agency who is in charge of corporate filings. A brand new company has 75 days from the date of its incorporation or llc formation to file. Once the llc is formed choosing how your business is to be taxed is performed by filing an election document form 2553 with the irs.