In 2018 I was employed by our LLC to provide services our company sold to clients. We have not filed form 8832 or 2553. Can we still do that to be treated like an S Corp?

[Anonymous]

Can we file form 2553 during the tax return process?

[PhyllisG · Accepted solution]

You must covert to an S Corp by March 15. You can request the conversion during this filing season, but it may not be applicable until the following year. In order for it to be applicable in the year of formation, you had to have completed the conversion within 75 days of opening the LLC. 

You are correct in stating that you need to file the Internal Revenue Service (IRS) Form 8832 to elect for your LLC to be taxed as a Corporation. Once the IRS reclassifies the LLC as a Corporation, then the Form 2553 must be filed to be taxed as an S Corporation.

Completing the federal tax re-classification process from LLC to S Corp does not change the entity type.  For state purposes it may still be considered an LLC and may be taxed as an LLC by the state where the company was formed.

You will have to formally change the entity structure from LLC to Corporate status. You will have to contact your state to determine if they have a formal conversion process, or if they use some other means to recognize the conversion.