Discussion:LLC Electing S Status
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| Revision as of 15:10, 22 October 2009 Kevinh5 (Talk | contribs) ([[Discussion:Con) ← Previous diff |
Revision as of 19:34, 22 October 2009 JR1 (Talk | contribs) (Keep up GF. No 8) Next diff → |
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| {{ForumReplyPost|UserID=Kevinh5|Date=22 October 2009|Text=[[Discussion:Converting a LLC to a S Corp]]}} | {{ForumReplyPost|UserID=Kevinh5|Date=22 October 2009|Text=[[Discussion:Converting a LLC to a S Corp]]}} | ||
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| + | {{ForumReplyPost|UserID=JR1|Date=October 22, 2009|Text=Keep up GF. No 8832 required for about three years now. Just a 2553. And it should be noted that much the same thing might be accomplishing by bifurcating the LLC interests. Search on that word and you'll get the articles. I don't know that it's been tested, but it eliminates any problems with LLC/Scorp conflicts.}} | ||
Revision as of 19:34, 22 October 2009
Discussion Forum Index --> Advanced Tax Questions --> LLC Electing S Status
Discussion Forum Index --> Tax Questions --> LLC Electing S Status
| 21 October 2009 | |
| I've got a two person husband and wife llc.
They've filed a 1065 the last two years. Make about 100k. I've convinced them that they'd be better off as an S-Corp for payroll tax purposes. Since we've filed 1065 for two years, do we just file the S election, or are we now prohibited? It'd be more challenging to start a new entity as there is over 100k in assets attached to the entity. | |
| 21 October 2009 | |
| You can file a 2553 by March 15, 2010 to elect S Status as of January 1, 2010. The husband and wife both sign.
I'd advise you not do this if there is any real property in the LLC. You say this is for payroll tax purposes? Is your plan to cut some of their SE tax cost by taking profits partially as salary and partly as distributions? Take care to continue a reasonable salary in the S Corp. S Corp distributions must also be paid in correct proportions at the same time to avoid issues with the S election. | |
| 22 October 2009 | |
| File Form 8832 first to choose to be taxed as a corporation. Then file Form 2553 to choose to have that corporation taxed as an S corp. Neither form has to be filed at inception; both can be done prospectively or up to 2.5 months after your desired date of inception. So you could make this effective for 1/1/2010 by filing now.
I think there'd be conversion to S corp concerns such as BIG tax but haven't looked this up. | |
| 22 October 2009 | |
| Discussion:Can we change LLC into S corporation | |
| 22 October 2009 | |
| Discussion:Converting a LLC to a S Corp | |
| October 22, 2009 | |
| Keep up GF. No 8832 required for about three years now. Just a 2553. And it should be noted that much the same thing might be accomplishing by bifurcating the LLC interests. Search on that word and you'll get the articles. I don't know that it's been tested, but it eliminates any problems with LLC/Scorp conflicts. | |
