Discussion:S-Corp Filing Requirement for LLC
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Discussion Forum Index --> Tax Questions --> S-Corp Filing Requirement for LLC
| 22 February 2006 | |
| If an LLC (formed in Feb. 2005) failed to file Form 8832 for Entity Classification to be taxed as a corporation, and also has NOT yet, as of today-2/22/2006, filed Form 2553 for S Election --can it still file those forms now before filing 2005 tax return as an S Corp? (The LLC had no knowledge of such required filings prior to coming to me as client.) Thanks in advance. | |
| 23 February 2006 | |
| I'm pretty sure you can just file the 1120S for the 2005 year. No 8832 is necessary. Even though the S election (Form 2553) is late, I believe there are generous provisions under certain Rev. Procs. for late filing of the 2553 with one of those exceptions being just that you intended to be taxed as an S corp and filed it's first tax return that way. So just file the 1120S, and then I suppose you should still file the F2553 also, and then enjoy the SE tax savings! The only thing I worry about is if there's significant profits that are not going to get hit with any SE tax since it's now an S corp, and there were 0 wages paid to the owners during the year. Not sure how you can create a "reasonable" wage after the year's over??? Good luck! | |
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