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Level 3
posted May 9, 2022 2:41:30 PM

Can I create a new LLC with S Corp election in the middle of the year?

Hi,

 

Can I create a new LLC with S Corp election now and file the 2021 business tax return (1120-S) for the income/expense happening between now to end of the year? 

 

Thanks!

 

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1 Best answer
Level 15
May 9, 2022 2:55:15 PM

The rules for making the election can be found at the link below.

 

https://www.irs.gov/instructions/i2553#idm139855003794080

 

5 Replies
Level 15
May 9, 2022 2:55:15 PM

The rules for making the election can be found at the link below.

 

https://www.irs.gov/instructions/i2553#idm139855003794080

 

New Member
May 10, 2022 2:51:31 AM

I just created my LLC in the city of Delaware just going through the Delaware secretary of state process and after doing research I came to this topic and I worried that I never came to such a situation where I need to create an LLC with S-Corp election in the middle of the year. I did research and according to that, you cannot create LLC in mid-year you need to wait for the year to end. I would just love to know more.

Level 15
May 10, 2022 7:36:48 AM

You can organize an LLC at any time during the year, but the rules for making the S corporation election differ (i.e., as to when the election goes into effect).

Returning Member
May 20, 2022 10:37:46 PM

hey I know we can register LLC any time, I went to register my LLC, and the Texas SOS member told me you cant register right now you may come next month, i have never seen that person in the SOS office during the process of taking information. So what I should do now.

Level 15
May 21, 2022 4:55:29 AM

Sounds like they may just be backlogged, and are trying to stall you until they catch up. See this:

Business and Nonprofit Forms (state.tx.us)

 

Have you tried to register the LLC online?

SOSDirect - An Online Business Service from the Office of the Secretary of State