Llc

[TAX]

(1) Client formed multi member LLC in WI on 01/01/2007

(2) Wants to elect Scorp status effective 01/01/2007

Can some one tell me steps?

Thanks!

My reserach:

(1) Complete 8832 to elect as corp - Is late election available?

(2) Next, complete 2553 once (1) is approved with late relief rev. procedure

Thanks!

[Gretel]

That is an interesting questing. You only need to file form 2553 but I don't know it the late election is also available if you want to be a select the box corporation.

[solomon]

See Rev. Proc. 2007-62. Can be found at legalbitstream.com

[Gretel]

See Rev. Proc. 2007-62. Can be found at legalbitstream.com

Great website. Found the answer there but not in Rev.Proc.2007-62. "The effective date specified on Form 8832 can not be more than 75 days prior to the date on which the election is filed and can not be more than 12 months after the date on which the election is filed."

I guess it makes sense that if you are not organized as a corporation you also can not elect to be one for federal tax purposes. So I assume just filing form 2553 will not give you the late election option as it does for corporations.

[TAX]

See Rev. Proc. 2007-62. Can be found at legalbitstream.com

Nice website. Thanks!

[TAX]

Great website. Found the answer there but not in Rev.Proc.2007-62. "The effective date specified on Form 8832 can not be more than 75 days prior to the date on which the election is filed and can not be more than 12 months after the date on which the election is filed."

I guess it makes sense that if you are not organized as a corporation you also can not elect to be one for federal tax purposes. So I assume just filing form 2553 will not give you the late election option as it does for corporations.

So in my case, since it was formed on 01/01/2007, I can still file 8832.

Then I can file 2553 once it is approved as you have greater period of relief compare to late election (8832) relief.

[John of PA]

S Status

Why would you want your LLC to file as an S. Be careful with the strick rules on having enough stock and debt basis to dedcut any losses. S Corps have the most strick rules on this.

[Gretel]

So in my case, since it was formed on 01/01/2007, I can still file 8832.

Then I can file 2553 once it is approved as you have greater period of relief compare to late election (8832) relief.

I don't think so. I understand it to be 75 days, which past already.