Title
10 Good Reasons Why LLCs Should Not Elect to Be S Corporations
Document Type
Article
Publication Date
10-1-2022
Abstract
Since 2004, the IRS has administratively made S elections for limited liability companies (LLCs) very easy. An LLC that is otherwise eligible to be an S corporation that is classified as a partnership or a disregarded entity can simultaneously elect to be classified as both a corporation and an S corporation by timely filing Form 2553, Election by a Small Business Corporation, without the need to also file Form 8832, Entity Classification Election. The Treasury regulations treat the "one-stop-shop" rule as a "deemed election" under the entity classification regulations.
Recommended Citation
Iannone, P. N., & Pannese, D. A. (2022, October 1). 10 good reasons why LLC's should not elect to be S corporations. The Tax Advisor.
