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- Feb 7, 2023
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I started an LLC in 2022 and elected s-corp on form 2553 because I was pressured by the timely election constraint of 2 months 15 days from formation on 2553 without doing enough research into the benefits/drawbacks of corporate tax treatment for my specific case.
I now realize while preparing that s-corp is not the right election for my business (real estate, passive income) and did not realize at the time an LLC is able to register as an S-corp later (Not sure why they have the deadline on Form 2553?)
This is my first year of operation and we have costs but no revenues yet. Can I reclassify using form 8832 and file taxes as a partnership? Or should I file as an S and reclassify later?
I'd like to write off as much of the business expenses as I can using the pass through entity of either the partnership or S-corp to my personal returns this year (employed by another company)
Thanks for the help.
I now realize while preparing that s-corp is not the right election for my business (real estate, passive income) and did not realize at the time an LLC is able to register as an S-corp later (Not sure why they have the deadline on Form 2553?)
This is my first year of operation and we have costs but no revenues yet. Can I reclassify using form 8832 and file taxes as a partnership? Or should I file as an S and reclassify later?
I'd like to write off as much of the business expenses as I can using the pass through entity of either the partnership or S-corp to my personal returns this year (employed by another company)
Thanks for the help.