1/7/2023 0 Comments Legal zoom llc in njOther entities file the election to be taxed as a corporation on Form 8832 in accordance with Regs. These entities are not required to file Form 8832, Entity Classification Election. Deemed election to be treated as a corporationĪn LLC that is eligible to elect S status and timely files an S election (Form 2553, Election by a Small Business Corporation) is considered to have made the election to be taxed as a corporation (Regs. 357(c)).Īn LLC or other entity that has filed a check- the- box election to be taxed as a corporation can elect S status if the entity and its shareholders meet the S corporation eligibility requirements (Regs. 351(a) applies and the LLC's liabilities do not exceed the basis of its assets (Sec. The deemed transfer to the corporation is tax- free, assuming Sec. The entity is then deemed to distribute the corporation's stock to its owners in complete liquidation (Regs. If the election is made, the entity is deemed to transfer all of its assets and liabilities to the corporation in exchange for the corporation's stock. An existing entity (such as a limited liability company (LLC) classified as a partnership) can elect under the check- the- box rules to be classified as a corporation.
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