Hello, I had an ecommerce LLC. business from Jan to Dec this year and dissolving it now. Although a sole member I would like to keep it separate and file it as a corporation. Can I file now or do I have to wait till Jan.?
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@ivonnesales wrote:
Hello, I had an ecommerce LLC. business from Jan to Dec this year and dissolving it now. Although a sole member I would like to keep it separate and file it as a corporation.
You might want to clarify the statements quoted above.
As a single-member LLC (with you as the sole member), did you make an election to be treated as a corporation (either a C or S corporation)? You would know whether you filed either Form 8832 or Form 2553.
I have not filed yet. Started LLC Jan. 2021, dissolving Dec. 2021.
Unfortunately, you can't do that. The election to have an LLC treated like an S-Corp or C-Corp must be made at the time the LLC is established/open, or within a short timeframe (60 days I think) after that. Since your intention is to dissolve the LLC by the end of 2021, it makes absolutely no sense to want that anyway. If you could do it, you'd just be creating unnecessary paperwork and costly filing requirements that will have little (if any) benefit to you at all. Just report the business income/expenses on SCH C as a part of your personal 1040 tax return indicating that you both opened and closed/disposed of the business in 2021, and be done with it.
@ivonnesales wrote:
I have not filed yet. Started LLC Jan. 2021, dissolving Dec. 2021.
Then you will file a Schedule C with your individual income tax return (Form 1040) on or before the deadline for filing individual income tax returns. You cannot file for the 2021 tax year at this point in time.
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Thanks everyone. I got it from here 😊
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