If filing late election relief, how do you classify/reclassify distributions already paid to yourself as W2 wages instead, since payroll has not yet been setup?
Great info Jason - thank you! Question: When mailing the paperwork to the IRS, do you include pages that were left blank (ex. parts 2-4)? Also, I have heard some people will both mail and fax simultaneously. Is this advised?
Hello Knott. If I have a LLC single member but I want to be treated as S corp, do I need to fill out Form 8832 and Form 2553? In other words you have apply for C corp first and then apply for S corp? How is the right path to do it?
You only need to file the Form 2553 for the LLC. Filing the form is a deemed C corporation election with a subsequent S election, so there is no need to separately file the Form 8832.
The election can only be made for a legal entity. Sole proprietors are operating a business without a legal entity. You'll need to form a domestic entity and apply for a new EIN for that entity before filing the Form 2553.
In regards to filing in a community property state, does the other spouse still have to sign as a consenting spouse in Part 1 Section J-N even if only one spouse is listed as the sole member of the SMLLC?
Thanks for watching! A late filed Form 2553 is filed more than 2 months and 15 days after the desired effective date you want the election to start. For example, if you want an election to be effective March 1, 2022, you will need to file the Form 2553 within 2 months and 15 after March 1, 2022. If you file beyond the 2 months and 15 days with that desired effective date, the election is late.
Hi Jason. Thank you for the awesome video. Quick question. Can a single member LLC elect S Corporation status with two shareholders? I am currently a single member llc and want to have two shareholders when I elect S status. Is that possible? Thank you!
@@JasonDKnottokay, so I would add a member to my LLC before making the S election on Form 2553? Is there a way to avoid this by having the other shareholder buy in or obtain an ownership percentage right after my S corporation election takes place?
I Originally opened a company as a Sole Proprietor LLC back in Sept 2021. I want to change to S Corp to file 2022 taxes as such. On "line E" do I put Jan 1, 2022, Today's date, or still use the date I opened the Company which was Sept 2021?
Could I clarify, can an LLC that's been filing as a sole proprietor for say four years then switch to an s corp starting in the fifth year? Or is the idea you have to make the change right away with three years being the limit?
What is the steps for converting LLC to Scorp after submiting form 2553 to IRS? I am a single owner of my LLC and want to wave the notice of the shareholders, create the stock ledger and the corp book, etc. I would appreciate if you can advise me.
You can still keep the LLC under state law. The S corporation election merely changes the way it is taxed for federal tax purposes, so once the Form 2553 is filed and accepted, you have an S corporation.
So I did my form 2553 about 2 Weeks ago and Mailed it to the place where it’s supposed to go. How do I know weather I got approved and I’m an S Corporation?
It normally takes 2 months to receive a confirmation from the IRS. If you haven't received a confirmation after that point, you can call the IRS and a representative can let you know whether the election was approved
A multi member LLC is by default a partnership for federal tax purposes. If every owner of the LLC is an eligible shareholder, the LLC can file the S corporation election.
Why didnt you follow the "C/O" rule for the addresses being the same as someone else's in Part I of the instructions for filling out the form? The rule from the IRS website says: "If the corporation's (entity’s) mailing address is the same as someone else's, such as a shareholder's, enter "C/O" and this person's name following the name of the corporation (entity)"
You can put C/O if you would like, but there is no detriment to filling out the complete address. The IRS processes these documents by hand, so in my opinion, make it as error proof as possible by providing the complete address for each and every party listed on the form.
For a guide on how to deduct shareholder health insurance premiums:
ruclips.net/video/eX4HcEvEtk8/видео.html
Best video I have seen so far on 2553. Thank you!!
Glad you liked it!
Thank you! These videos are gold.
Glad you like them!
Finally someone answerd question and leaves no doubt. Thanks so much!!!!
Glad it was helpful!
Thank you for this, especially helping me understand about the date for Section E and filing deadline.
You're welcome!
Hey, Very helpful video. Really got help to fill out my form. Thanks
Glad it helped!
If filing late election relief, how do you classify/reclassify distributions already paid to yourself as W2 wages instead, since payroll has not yet been setup?
Great info Jason - thank you! Question: When mailing the paperwork to the IRS, do you include pages that were left blank (ex. parts 2-4)? Also, I have heard some people will both mail and fax simultaneously. Is this advised?
Great Video! Thanks for sharing the knowledge.
Glad it was helpful!
Hello Knott.
If I have a LLC single member but I want to be treated as S corp, do I need to fill out Form 8832 and Form 2553?
In other words you have apply for C corp first and then apply for S corp?
How is the right path to do it?
You only need to file the Form 2553 for the LLC. Filing the form is a deemed C corporation election with a subsequent S election, so there is no need to separately file the Form 8832.
@@JasonDKnott Thank you for the quick response...blessings!!
Hello, thanks for the great explanation!!! I'm sole proprietor, can I use my current EIN? or I need to apply a new one? Thanks
The election can only be made for a legal entity. Sole proprietors are operating a business without a legal entity. You'll need to form a domestic entity and apply for a new EIN for that entity before filing the Form 2553.
In regards to filing in a community property state, does the other spouse still have to sign as a consenting spouse in Part 1 Section J-N even if only one spouse is listed as the sole member of the SMLLC?
What classifies as “Late” to file f2553??
Awesome video by the way, I appreciate your time and tutorial.
Thanks for watching! A late filed Form 2553 is filed more than 2 months and 15 days after the desired effective date you want the election to start. For example, if you want an election to be effective March 1, 2022, you will need to file the Form 2553 within 2 months and 15 after March 1, 2022. If you file beyond the 2 months and 15 days with that desired effective date, the election is late.
Hi Jason. Thank you for the awesome video. Quick question. Can a single member LLC elect S Corporation status with two shareholders? I am currently a single member llc and want to have two shareholders when I elect S status. Is that possible?
Thank you!
The LLC can make an S corporation election. If you want to have a 2 shareholder S corporation, you'll need to add another member to your LLC.
@@JasonDKnottokay, so I would add a member to my LLC before making the S election on Form 2553?
Is there a way to avoid this by having the other shareholder buy in or obtain an ownership percentage right after my S corporation election takes place?
Thank you, it was very helpful.
You're welcome!
I Originally opened a company as a Sole Proprietor LLC back in Sept 2021. I want to change to S Corp to file 2022 taxes as such. On "line E" do I put Jan 1, 2022, Today's date, or still use the date I opened the Company which was Sept 2021?
Could I clarify, can an LLC that's been filing as a sole proprietor for say four years then switch to an s corp starting in the fifth year? Or is the idea you have to make the change right away with three years being the limit?
What is the steps for converting LLC to Scorp after submiting form 2553 to IRS?
I am a single owner of my LLC and want to wave the notice of the shareholders, create the stock ledger and the corp book, etc.
I would appreciate if you can advise me.
You can still keep the LLC under state law. The S corporation election merely changes the way it is taxed for federal tax purposes, so once the Form 2553 is filed and accepted, you have an S corporation.
@@JasonDKnott Thank you. For maintaining the Scorp where do I need to wave the notice of shareholders meeting, since I don’t I am a sole owner?
So I did my form 2553 about 2 Weeks ago and Mailed it to the place where it’s supposed to go. How do I know weather I got approved and I’m an S Corporation?
It normally takes 2 months to receive a confirmation from the IRS. If you haven't received a confirmation after that point, you can call the IRS and a representative can let you know whether the election was approved
So if me and my husband do partnership, on llc, we can file scorp ??
A multi member LLC is by default a partnership for federal tax purposes. If every owner of the LLC is an eligible shareholder, the LLC can file the S corporation election.
Why didnt you follow the "C/O" rule for the addresses being the same as someone else's in Part I of the instructions for filling out the form? The rule from the IRS website says: "If the corporation's (entity’s) mailing address is the same as someone else's, such as a shareholder's, enter "C/O" and this person's name following the name of the corporation (entity)"
You can put C/O if you would like, but there is no detriment to filling out the complete address. The IRS processes these documents by hand, so in my opinion, make it as error proof as possible by providing the complete address for each and every party listed on the form.
Thanks.
You're welcome!
What if you elect 8 years later?
Hi Jason -Thanks for the video Just wondering who should sign as office(under section I) ?
An officer should sign in Part 1, and all shareholders in the S corporation need to sign in Part 1 Page 2.
20:00 maybe not a real address 😂 what's funny is that 123 Florida st isn't real but there actually is a 123 fake st in Tampa, fl 33610