Checking the LLC box - Changes?

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • Nashville
    Senior Member
    • Nov 2007
    • 1129

    #1

    Checking the LLC box - Changes?

    I've ended up with an LLC who has (on their own with only internet advice) elected to be taxed as a partnership. They have already
    filed for three years.

    Any way they can change the election to a C Corp without creating a new entity? Their LLC has worked hard to become certified in several professional areas and these certifications cannot be transferred to a new entity.
    Last edited by Nashville; 08-05-2014, 04:30 PM.
  • Gary2
    Senior Member
    • Aug 2010
    • 2066

    #2
    Originally posted by Nashville
    I've ended up with an LLC who has (on their own with only internet advice) elected to be taxed as a partnership. They have already
    filed for three years.

    Any way they can change the election to a C Corp with creating a new entity? Their LLC has worked hard to become certified in several professional areas and these certifications cannot be transferred to a new entity.
    I assume you mean without creating a new entity.

    I'm not sure if you're asking if they can go back those three years, or just change for the future. I see no reason they couldn't file 8832 to change to corporate treatment for future years.

    Comment

    • Nashville
      Senior Member
      • Nov 2007
      • 1129

      #3
      Correction Noted

      Originally posted by Gary2
      I assume you mean without creating a new entity.
      Yes, that is what I meant. I edited the original post to show this.

      It's amazing how people think they can save money with "Legalzoom.com" and other such free internet advice. Even if the language is sufficiently explicit, the reader still doesn't have enough background to know what is being said. Sometimes they can even google up IRS codes and regs, but after doing so, still don't have a clue what the verbage is really telling them.

      Comment

      • TaxGuyBill
        Senior Member
        • Oct 2013
        • 2320

        #4
        I agree with Gary. Being taxed as a partnership is the 'default' status for a multi-member LLC. That means they can make the election to be taxed as a corporation (for future years) whenever they choose to. They could even apply for a "late election" on Form 8832 if they want to try to do it this year.

        Comment

        Working...