- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
"Is it better to...?"
That is an extremely complicated question and you need professional advice on the pluses and minuses of forming a corporation. You can also file form 8832 to elect to be taxed as an S-corp without actually forming an S-corp. Either way, you need an expert to go over the election with you.
No matter what, the 8832 election can't be retroactive more than 75 days, so if the LLC was active in 2021, you must file form 1065 for 2021 and you are substantially late (and there are substantial late penalties). If you just formed the LLC in 2022, you would have to file form 1065 by March 15, 2023 (not April 15), and you can't change to an S-corp now unless the LLC was formed less than 75 days ago. If you did make the election, it would probably be best to make it effective January 1 of some year.