Comments on: Can an LLC be Taxed as an S Corp? http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/ Minnesota Attorney Blog Mon, 26 Dec 2011 17:18:40 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Aaron Hall, Minnesota Lawyer http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2037 Aaron Hall, Minnesota Lawyer Thu, 08 Dec 2011 01:11:37 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2037 Michael: No. A general partnership cannot elect to be taxed as an S Corp. Only corporations and LLCs can elect S Corp treatment. Aaron Michael:

No. A general partnership cannot elect to be taxed as an S Corp. Only corporations and LLCs can elect S Corp treatment.

Aaron

]]> By: Michael http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2036 Michael Wed, 07 Dec 2011 19:59:51 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2036 Can we form a general partnership and elect to be treated as an S corp for federal income tax purposes ? Would this be the form 2553 ? Can we form a general partnership and elect to be treated as an S corp for federal income tax purposes ?

Would this be the form 2553 ?

]]> By: Aaron Hall, Minnesota Lawyer http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2035 Aaron Hall, Minnesota Lawyer Wed, 07 Dec 2011 13:12:06 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2035 Victor: Great question. The answer depends on the source of the interest income and potentially other factors. This type of question should be discussed with a CPA. Aaron Victor:

Great question. The answer depends on the source of the interest income and potentially other factors. This type of question should be discussed with a CPA.

Aaron

]]> By: victor walker http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2034 victor walker Wed, 07 Dec 2011 05:04:10 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2034 Are multiple-member (other LLCs or LPs) owners of a newly-created LLC (NEWCO) subject to self employment tax on the net profits of NEWCO? If NEWCO's profit is derived from interest income, is that treated as passive income and reported on each owner's Schedule E or "active trade or business" and subject to Schedule SE? Are multiple-member (other LLCs or LPs) owners of a newly-created LLC (NEWCO) subject to self employment tax on the net profits of NEWCO? If NEWCO’s profit is derived from interest income, is that treated as passive income and reported on each owner’s Schedule E or “active trade or business” and subject to Schedule SE?

]]> By: Aaron Hall, Minnesota Lawyer http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2033 Aaron Hall, Minnesota Lawyer Tue, 06 Dec 2011 22:37:51 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2033 Kirke: The process for your LLC will depend on many factors. I would need to know a lot more about your LLC before I could advise you on this for your particular circumstances. I recommend you meet with an attorney to ensure this is done correctly (to avoid unintended tax consequences). Aaron Kirke:

The process for your LLC will depend on many factors. I would need to know a lot more about your LLC before I could advise you on this for your particular circumstances. I recommend you meet with an attorney to ensure this is done correctly (to avoid unintended tax consequences).

Aaron

]]> By: Kirke http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2032 Kirke Tue, 06 Dec 2011 21:56:07 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2032 Aaron, As a follow-up to my previous question, you mentioned that the election remains in effect until it is terminated or revoked. Can revocation be made easily and voluntarily by the members of the LLC and if so what is the process / form that needs to be followed / filed. Hoping to avoid having to establish a new LLC and dissolve original one in order to correct the error in electing S-Corp status. Thanks. Aaron, As a follow-up to my previous question, you mentioned that the election remains in effect until it is terminated or revoked. Can revocation be made easily and voluntarily by the members of the LLC and if so what is the process / form that needs to be followed / filed. Hoping to avoid having to establish a new LLC and dissolve original one in order to correct the error in electing S-Corp status. Thanks.

]]> By: Aaron Hall, Minnesota Lawyer http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2028 Aaron Hall, Minnesota Lawyer Tue, 06 Dec 2011 02:59:39 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2028 Kirke: Once the S corp election is made, it stays in effect until it is terminated or revoked. IRS consent generally is required for another election by the corporation (or a successor corporation) on Form 2553 for any tax year before the 5th tax year after the first tax year in which the termination or revocation took effect. See IRS Regulations section 1.1362-5 for details. Aaron Hall Kirke:

Once the S corp election is made, it stays in effect until it is terminated or revoked. IRS consent generally is required for another election by the corporation (or a successor corporation) on Form 2553 for any tax year before the 5th tax year after the first tax year in which the termination or revocation took effect. See IRS Regulations section 1.1362-5 for details.

Aaron Hall

]]> By: Kirke http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2019 Kirke Sat, 03 Dec 2011 04:27:59 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2019 Aaron, If an election is made at the time of setting up an LLC to be treated as an S-Corp can 8832 be used to undo the election and return to the partnership status? More specifics if necessary include the fact that the LLC is owned by two married individuals and prior to the desired change in election the LLC has no assets. More specifically there was a change in desired election before starting any 'business'. Aaron, If an election is made at the time of setting up an LLC to be treated as an S-Corp can 8832 be used to undo the election and return to the partnership status? More specifics if necessary include the fact that the LLC is owned by two married individuals and prior to the desired change in election the LLC has no assets. More specifically there was a change in desired election before starting any ‘business’.

]]> By: Aaron Hall, Minnesota Lawyer http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2004 Aaron Hall, Minnesota Lawyer Wed, 23 Nov 2011 17:30:24 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2004 Stewart: An LLC taxed as an S Corp must meet <em><strong>all </strong></em>the requirements of an S Corp. Aaron Stewart:

An LLC taxed as an S Corp must meet all the requirements of an S Corp.

Aaron

]]> By: Stewart Good http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp/comment-page-2/#comment-2003 Stewart Good Wed, 23 Nov 2011 17:24:28 +0000 http://www.aaronhall.com/blog/can-an-llc-be-taxed-as-an-s-corp#comment-2003 Can a LLC choose to be taxed as a sub s and have a foreign member (Canadian)? Can a LLC choose to be taxed as a sub s and have a foreign member (Canadian)?

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