Some comments:
- Your question is not real clear.
- Are you wanting to just end your current business completely and start a new business line?
- Or are you just wanting to continue with the same business, but just in a different entity structure?
- This forum is not the best way to talk through these types of questions, but if you are going to stay in the same business and just want to do so in a corporation, you can do that.
- You would simply file form 8832 and follow the questions.
- One issue with this, is you need to have an EIN when completing the form 8832. So you will need to obtain one if you don't already have one.
- Part I question 8 asks the effective date of the change. This will be key so make sure you read the instructions to the form.
- Keep in mind, that your state may require some type of change documentation.
- Even if you do change, you will follow @Anonymous_ note on 2021 filing, as the change will not be effective until 2022.
- The final unknown is whether the entity will remain a C corporation or whether you want to elect S corporation status at the same time. This has not been addressed. If this is the case, I would recommend having a one on one with a tax professional to make sure this if handled correctly, as a foot fault could be costly.
*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.
