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I'm just wondering if an LLC taxed as a partnership and using accrual basis of accounting can change method of accounting to cash when it files an S corporation election? If yes, would a form 3115 be necessary as this is a new entity?
I'm just wondering if an LLC taxed as a partnership and using accrual basis of accounting can change method of accounting to cash when it files an S corporation election? If yes, would a form 3115 be necessary as this is a new entity?
You speak of the business as functioning as an LLC. So it is. These two "elections" don't change the fact that the LLC uses the accrual basis and therefore must get permission to change, regardless of it's tax treatment.
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