To reflect this change you will need to open up the S-Corp return (Form 1120S). Opening up this section will require you to re-enter all of the business information because of the change in structure. However, on this return you reflect the Corp election change. You will be asked when was the first day the entity became an S-Corp. This will be the date the IRS approved on your election request (Form 2553). If you don't already have this software, you will need TurboTax Business to complete this return.
I have a multi member LLC that filed using Form 1065 for 2018. We have elected to file as an S Corp using form 1120 S effective 1/1/2019 for calendar year 2019. Can I transfer over the data from Form 1065 for 2018 to Form 1120 S. If I can How, or do I have to start a New Return for Form 1120 S? Thanks
This is an old thread. Although the date appears fairly new, that is the result of a change in software for the forum.
To address your question, you will need to start a new return and input the information manually; no transfer option available.
When you elect to have an LLC treated like as S-Corp, understand that is "FOR TAX PURPOSES ONLY!" and absolutely nothing else.
First thing you must do is "CLOSE" the multi-member LLC by filing a final 1065 partnership return and issuing all owners a final K-1. You will need to show the disposition of "ALL" assets, inventory, and any "cash on hand" held by the partnership.
Next, you will start and complete what will be your "FIRST" 1120-S corporate return. If you don't know what you're doing (and very few do) then you should seek professional help for this transition. Do this wrong, and I can guarantee you that the fines, penalties and back taxes that will be assessed, will bankrupt the S-Corp fairly quickly. It makes the cost of professional help seem like a pittance in comparison. Please seek professional help yesterday, if not sooner.