First did you file an election for the LLC to be taxed as a C-corp. form 8832
When To File. your late if you wanted this for 2021. for 2021 for timely election it had to be filed by march 15 ,2022
Generally, an election specifying an eligible
entity’s classification cannot take effect more
than 75 days prior to the date the election is
filed. An eligible entity may be eligible for late election
relief in certain circumstances. For more
information, see Late Election Relief, later.
Generally, an election specifying an eligible
entity’s classification cannot take effect more
than 75 days prior to the date the election is
filed, nor can it take effect later than 12
months after the date the election is filed. An
eligible entity may be eligible for late election
relief in certain circumstances. For more
information, see Late Election Relief, later.
https://www.irs.gov/pub/irs-pdf/f8832.pdf
see page 6 to see if you qualify for late election relief.
a calendar C-Corp for 2021 is due by 3/15/2022
you do not have much time to file and get response on C-corp election
if you have not done so already you should get professional guidance at least for the first year. the laws are complicated and making a mistake can be extremely costly
there is more to running a corp than operating as an incorporated business.
things like salary, workmen's comp insurance. filing payroll tax returns.
on a go-it-alone basis, Turbotax Business can handle the C-Corp return and help you through payroll issues.
also, note that while salaries reduce taxable income. taking out other money - dividends do not reduce taxable income of the corp but are additional taxable income to you. another catch to C-corps is they can not accumulate unlimited amounts of profits without making dividend distributions.
IRC 531 comes into play. excess accumulated taxable income can be subject to a 20% additional tax besides the regular taxes you paid on the income.
