C Corp. I recently reapplied, using form 2553 to have the election changed to S Corp but have not gotten a response yet. However, I now believe it might be more reasonable to just file as an LLC, since my business income is less than 25,000 annually and I am the single member.
Before you do anything else I highly recommend you seek local professional guidance in this matter ... as a Corp you pay taxes at the corporate level and again on the personal level ... as an S-Corp you must take a salary and file payroll tax returns... so if you don't get it right it could cost you quite a bit in fines and penalties.
I pay myself a salary and file quarterly returns as well as annual forms for FUTA taxes. I've been filing as a corporation for 7 years but just realized that I maybe better off simplifying this process. I just want to know how to make that happen.
Again ... talk to someone locally to decide if that is really best and what steps your state will require ... fairly certain you will need to close the business and start fresh with a new user EIN but not sure.
No, if you have elected to treat your business as an S-Corp by filing form 2553, you have to file taxes as an S-corp (form 1120S).
It you want to make the change you must legally close the corporation and file the final business return and then you can re open in as an LLC which is taxed in a different manner.
So I have to completely close my LLC, start a new LLC, different name, etc. re-register with my secretary of state, to change my tax filing election? I thought I could complete a form to rescind the election and keep my same small business.