My business was a disregarded entity LLC for 10 years and last year I switched to being taxed as Scorp. After running taxes for one year the savings are minimal because of the payroll taxes and also much more complicated. I want to switch back to a disregarded entity. Here is where I am confused:
- I know I have to file a revocation letter
- If accepted, does that revert me back to a disregarded entity? Everything I am reading says it reverts me to a C Corp but that doesn't make sense.
- If I fill in form 8832 it stops me at question #2 and says I have to wait 5 years.
I just want to go back to a disregarded for easy, any thoughts to help with the confusion? Thank you - Paul!!
