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

[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.

 

[Stuart A. Bronstein]

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

 

[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).

 

[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