Discussion:Sole proprietor to LLC

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Discussion Forum Index --> Tax Questions --> Sole proprietor to LLC

B-BOY (talk|edits) said:

1 March 2006
I have a client who went to an LLC from sole prop. on 04-01-2005.

The client wants to be taxed as a corp, but Form #8832 has not been filed. My question(s) are:

  1. Form #8832, Line #2 (form of entity)- should Box A or Box C be checked? I am confused!!
  2. Form #8832, Line #4 (eff. date)-I feel the date of 04-01-2005 is the date to be shown, but in viewing the instructions, there is some doubt. Therefore I do need verification on this date.

Thanks for the anticipated cooperation I "hope" to receive.

B-BOY

PDXCPA (talk|edits) said:

1 March 2006
My 2 cents worth. You can only back date an Eff. Date by 75 days, unless you have a qualified reason to back date it further (discussed further in instructions).

Cpa21 (talk|edits) said:

2 March 2006
I have had success getting it back-dated under rev proc 2004-48.

Pjs (talk|edits) said:

3 March 2006
First, do you have to type in caps?

2nd, why would the client want to be taxed as a corp? Did he mean as a C corp, an S corp?

Is this forum for real?

Bean (talk|edits) said:

3 March 2006
As a single member LLC, you must first choose to be taxed as a corporation by filing 8832. THEN, you can file 2553 for S Election and be taxed as an S Corp.

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