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Old 11-03-2015, 04:58 PM
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LLC Sho Tax Year

Hello all....I'm in the process of forming a LLC (Missouri), within the next couple of days/week. We want this LLC to be taxed as an S-Corp; however, with the short tax year would the 2015 season be a disregarded entity where we can pass the losses (start-up costs, equipment purchases) to personal filings, and then have the S-Corp designation begin in Jan 2016? For the remainder of 2015, we do not intend on having any profit, just business startups. Thank you.



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Old 11-03-2015, 10:29 PM
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Originally Posted by KAE_Firearms View Post
Hello all....I'm in the process of forming a LLC (Missouri), within the next couple of days/week. We want this LLC to be taxed as an S-Corp; however, with the short tax year would the 2015 season be a disregarded entity where we can pass the losses (start-up costs, equipment purchases) to personal filings, and then have the S-Corp designation begin in Jan 2016? For the remainder of 2015, we do not intend on having any profit, just business startups. Thank you.
it is possible to convert your LLC to an S-Corp FOR TAX purposes when filing your 2015 tax return, however, it can be a complicated process. You can submit the documents necessary to convert your LLC to an S-Corp for tax purposes along with your 2015 tax return. In some situations, your election to be taxed as an S-Corp might not be effective until the following tax year of 2016, so the rest of your tax return should reflect this fact if it applies. Also, filing with the IRS for treatment as an S-Corp does not change the fact that your business remains an LLC for all other purposes.
Certain types of business entities ,mostly non-corporations, can elect how they will be classified for tax purposes by changing their current default classification using form 8832.



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Old 11-03-2015, 11:51 PM
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Not looking for the S-Corps designation for tax year 2015; ideally would like it to start when 'actual business' starts with exchange of good/services & money! We really ARENT wanting it to be effective for 2015. We know all about the form for decision, but still kinda unclear since it's a short tax year & business formation wouldn't be within 75 days of tax year end.



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Old 11-04-2015, 11:27 PM
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Originally Posted by KAE_Firearms View Post
Not looking for the S-Corps designation for tax year 2015; ideally would like it to start when 'actual business' starts with exchange of good/services & money! We really ARENT wanting it to be effective for 2015. We know all about the form for decision, but still kinda unclear since it's a short tax year & business formation wouldn't be within 75 days of tax year end.
Not looking for the S-Corps designation for tax year 2015; ideally would like it to start when 'actual business' starts with exchange of good/services & money! We really ARENT wanting it to be effective for 2015. We know all about the form for decision,==>>As you said,” We want this LLC to be taxed as an S-Corp; So, , your election to be taxed as an S-Corp might not be effective until the following tax year of 2016.

but still kinda unclear since it's a short tax year & business formation wouldn't be within 75 days of tax year end======>>To have your LLC receive the tax treatment of an S Corp, you need to file Form 2553 within the first 2 months and 15 days of the beginning of the tax year in which the election is to take effect. If you file it later, your election will be effective for the next tax year.



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