Filing 2553 for LLC after the fact to be taxed as S?


C

Cherrybounce

WHen me and my partners formed an LLC we elected to be taxed
as a p'ship. This was in 2005. We will have no income for
the year. Can we file a 2553 before March 15 and request to
be taxed as an S? THanks.
 
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S

Stuart A. Bronstein

Cherrybounce said:
WHen me and my partners formed an LLC we elected to be taxed
as a p'ship. This was in 2005. We will have no income for
the year. Can we file a 2553 before March 15 and request to
be taxed as an S?
For 2006, yes. But why???

Stu
 
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J

JMc

For 2006, yes. But why???
One thought is that the income from the LLC might be subject
to S/E tax while the profits from the S-Corp would not (of
course you would pay a reasonable salary to the owner/employees).
 
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S

Stuart A. Bronstein

One thought is that the income from the LLC might be subject
to S/E tax while the profits from the S-Corp would not (of
course you would pay a reasonable salary to the owner/employees).
He said there'd be no net income for the year. So I'm
guessing they want to be able to recognize any loss. But
that should be the same either taxed as a partnership or as
an S-Corp, unless the loss is huge, in which case being
taxed as a partnership allows a larger deduction.

Stu
 
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