To elect Corporation status, the LLC must file IRS Form 8832 – Entity Classification Election. To elect S Corporation status, the LLC must file IRS Form 2553 – Election by a Small Business Corporation.

Can an LLC choose to be taxed as an S-Corp?

A multi-owner LLC is automatically taxed as a partnership by default, while LLCs with one owner are taxed like sole proprietorships (one-owner businesses). However, LLCs may choose to be taxed as a C corporation or S corporation. This is easily accomplished by filing a document called an election with the IRS.

How to elect a LLC as a S corporation?

A timely filed Form 2553 will constitute a deemed entity classification election, as if Form 8832 were filed. However, this deemed entity classification election is effective only if the electing entity meets all of the requirements to be an S corporation.

How to form a LLC or a corporation?

Meaning, you first need to form an LLC or a Corporation (making the appropriate filing with your state’s Secretary of State office), then elect to have that entity taxed as an S-Corporation with the IRS. I highlighted “taxed as” because that is the proper verb, not “form” an S-Corp.

Can a LLC be taxed as a C corporation?

Taxing an LLC as a Corporation. LLC owners can file an IRS document known as an election if they want to be taxed as a C or an S corporation. To be treated as an S corporation by the IRS, an LLC must complete and file Form 2553. An LLC is eligible to receive S corporation status from the IRS only if: It has fewer than 100 shareholders.

Do you have to file a North Carolina corporation tax return?

When filing a North Carolina S-corporation tax return, you will be required to file the forms for informational purposes even though you will not have to pay any corporate taxes since an S-corporation is a pass-through entity. Taxes will be paid at the shareholders’ level on their personal tax returns.