There is a lot to unwrap here, and unfortunately a forum such as this is not really conducive as there are just too many questions:
- In order to make an S election, there needs to be an eligible entity. An LLC can be such an entity, but there needs to be a specific election to be taxed as an association, then make the S election.
- You indicate that you have "an eligible entity effective 6/22/2023".
- What exactly does this mean?
- What was filed in order to be an eligible entity on the date noted?
- You just indicate that you are in the process of completing a form 2553.
- Did you have an operating agreement for the LLC?
- If you did, was this operating agreement amended to make sure that there is no mention of the ability to make special allocations? Many operating agreements are just boiler plate, and if not adjusted, may invalidate the S election if audited due to the possibility of having more than one class of stock.
- Since you indicate "I", the assumption at this point is that you formed a single member LLC and most likely do not have any operating agreement?
- It is possible to receive income as a nominee. However, I am fairly sure at this point you don't have any documents dated in January 2023 that state that the S corporation is the nominee for the income. Just not possible, as there was no S corporation at that time. Don't allow anyone to tell you that the document can be backdated. That would be tax avoidance, for the simple fact that this is just now being discussed.
- I would also question the ability to receive "bonus income". Same situation. How can you receive bonus income as an employee of the S corporation when it wasn't even around.
- I would not recommend anything other than filing as the facts warranted.
- I don't have a problem with "gray", but I don't see anything gray here.
- I also agree with @Mike9241 where you can request a late election, but since there was no LLC in January, not sure this is possible.
- Next time just make sure you meet with a tax professional before you make any decisions that have tax implications.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
