How To Register Llc As S Corp

The form 8832 is also filed to change the llc s entity classification.

How to register llc as s corp. Determine the best state in which to form the new llc. Income tax return for an s corporation. An experienced corporate or tax lawyer can help the s corp. An llc that is taxed as a sole proprietorship still offers limited liability protection. You can choose to be taxed as a c corporation or as an s corporation.

Forming a limited liability company requires registering your business with the state and filing articles of organization. To file for s corporation treatment you ll need to file form 2553 with the irs. It s relatively simple paperwork but there are strict deadlines for when it needs to be filed. You can avoid this double taxation by electing to become an s 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.

Paying s corp taxes as an llc an llc that elects s status must file form 1120s u s. 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. Form 1120s is the form used by s corporations to report corporate income. When these llcs meet the criteria for filing as an s corp they can file taxes as an s corp. Although many llc s choose to go with the default tax format there are some tax benefits available if you choose the s corporation.

If you register an llc and choose to be taxed as an s corporation you must report your earnings on your personal income tax return. Choose a name for the new llc. Payments or distributions to members of the llc will be included as compensation to officers in the section for deductions. An llc or limited liability company is a business formed under the tenets of state law. In order to be taxed as an s corporation the llc must file form 255 3.

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. 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. An llc may file taxes as s corp by completing and filing form 255 3 election by a small business corporation. The s corporation must choose a name for the new llc and confirm that it s available in the state of formation. 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.