This tells the IRS that you don't want your LLC taxed as a sole proprietorship or partnership under the default rules, but as a corporation. Unless you want to file as a C-Corp on the current or previous tax returns, you should file with your S-Corp election and indicate the first day of the tax year in which your S-Corp election can become effective as the effective date for the C-Corp election. This way, the IRS will continue to classify your company under the default rules until the tax year in which your S-Corp election becomes effective.
To elect for S-Corp treatment, file Form You can make this election at the same time you file your taxes by filing Form S, attaching Form and submitting along with your personal tax return. This must be done no more than six months from the date on which the tax return is due; be sure to mark the first date of the tax year as that of the year reflected in Form S on line E of Alternatively, you can make the election valid for the current tax year, which will be reflected in next year's return, by filing Form no more than two months and 15 days from the start of the company's tax year.
All members of the LLC must consent to the election at the time of filing Form and sign the form. Section F of Form allows you to select the type of tax year your S-Corp will use. You can select to use the calendar year or a 52 to 53 week year ending in December. But you can also select a tax year calculated from the date you assumed ownership of the company, called an ownership year, or another tax year based on the period when the company began conducting business in accordance with its Articles of Organization.
If you select either of these types of tax year, you will have to complete Part II of Form See the instructions to the form for more information. The name and contact information for the corporate officer who the IRS can contact about your application. Forms must be filed by two months and 15 days after your tax year. For businesses whose tax year is the calendar year, this means you must file by March On page 2, you provide information on your shareholders.
For each shareholder, you provide their name, address, signature, number of shares or percentage of ownership and social security number.
Your fiscal year or tax year is the month period that you use for financial reporting. Most businesses will use the calendar year January to December as their fiscal year.
In this section, you are asked some simple questions about whether you are changing or retaining your tax year. This section is for any businesses filing their application past the IRS deadline. For example, if you want to be your first tax year as an S corp and your tax year begins on January 1, you must file form by March 15, You cannot file form online or electronically. The original election i. You can find the fax number and mailing address that you submit your form to on page 3 of the form instructions PDF.
There is no single deadline to submit form Talk with a Real Specialist. You will receive acknowledgment and approval from the IRS. If not, follow-up with the Service Center where Form was filed. For State Taxes To obtain S-Corp tax treatment for state taxes, you may need to file additional documents with your state department of revenue or other taxation authority. Tax Election Education C-Corp vs.
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