LLC treated as S Corp, did not close LLC on last year taxes

[sleepyredhead]

I've had an LLC for about 10 years but we are being treated as an S Corp as of 1/1/2021. I didn't get the IRS notification of acceptance until July 2021. From what I've read, I should have closed my LLC in my personal taxes as of 12/31/2020. I did not do that. Can I do it on this years personal return?

[AliciaP1]

You do not need to "close" the business unless you stopped operations.  For 2021 you merely need to file the Form 1120S tax return noting the effective date of the S-Corp election and include the K-1 information from that return on your personal tax return.

[sleepyredhead]

Thank you!

[ZoltanB45]

Did the LLC transfer or you just created a new entity taxed as an S Corp? I am asking, because I have never seen  an S Corporation election being made 10 years after organizing. If the LLC became an S Corp, nothing has to be done.

If you have a new entity, you might want to close the LLC with the state.  Some states require separate filing and have separate taxes for the LLC.  Look into yur states guidance in how to treat the closing of an LLC. This is only if you have a new entity.

[sleepyredhead]

The LLC is not closed or new. It has grown quite a bit in the last few years, so an accountant had us file with IRS to be treated as an S Corp.  

[ZoltanB45]

I have heard of using IRS language to make a late election up to 3 years but never heard of 10. Anyways, you wouldn't have to do anything with the state as it is still the same entity.