topic Re: LLC TO C CORP in Get your taxes done using TurboTax

LLC TO C CORP

Djbrevik17 — Tue, 24 Feb 2026 06:40:51 GMT

can a single owner change from an LLC to a C corp for taxes to keep separate from filing with personal taxes?

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 16:34:22 GMT

@Djbrevik17 wrote:

can a single owner change from an LLC to a C corp for taxes to keep separate from filing with personal taxes?

Yes, but you will have to file Form 8832 in order to do so.

See https://www.irs.gov/pub/irs-pdf/f8832.pdf

Note that you should seek an in-person consultation with a local tax professional prior to making this decision.

Re: LLC TO C CORP

conniem123 — Wed, 28 Jun 2023 16:35:59 GMT

Hi Djbrevik17,

A corporation would be its own entity, beginning the date the C-Corp is formed, not the LLC.

You would need to obtain a new EIN, and as a C-Corp may be responsible for other tax forms and payroll tax forms.

https://www.irs.gov/businesses/small-businesses-self-employed/forming-a-corporation

I hope you find this helpful!

Connie

Re: LLC TO C CORP

Djbrevik17 — Wed, 28 Jun 2023 16:39:04 GMT

With only 1 employee (self) how does that work for federal unemployment tax and social security tax? Do I end up paying that twice then once I file my own personal taxes with a 1040?

Re: LLC TO C CORP

conniem123 — Wed, 28 Jun 2023 16:46:27 GMT

If you create a C Corp, the C Corp may have payroll, which can include yourself. The C Corp will file payroll reports, including the Form 940 for unemployment and the C Corp pays the unemployment tax.

For the social security tax, the C Corp will file payroll reports, including the Form 941, to submit the social security tax. Half of the social security tax, or 7.65%, is withheld from the employee wages, and the employer (the C Corp) is responsible for the other half of the social security tax, or 7.65%.

You do not pay any social security tax when filing an individual income tax return, only income tax.

Hope you find this helpful!

Connie

Re: LLC TO C CORP

Djbrevik17 — Wed, 28 Jun 2023 16:49:31 GMT

does it work like a schedule C essentially... if the C Corp has $0 income after expenses and paying employee (self) then does the company pay $0 tax?

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 16:50:17 GMT

@Djbrevik17 wrote:
Do I end up paying that twice then once I file my own personal taxes with a 1040?

As the sole shareholder in a C corporation, you would be subject to double taxation; once on the net profit when you file the 1120 for the C corporation and again when you withdraw those profits (as dividends) on your 1040.

If you, for whatever reason, need an entity separate from yourself, you might want to look into organizing an S, rather than C, corporation.

Again, you should consult with a local tax professional before making any decisions on this matter.

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 16:51:51 GMT

@Djbrevik17 wrote:

... if the C Corp has $0 income after expenses and paying employee (self) then does the company pay $0 tax?

Yes. Note that the salary is required to be "reasonable".

Re: LLC TO C CORP

conniem123 — Wed, 28 Jun 2023 16:53:05 GMT

The C Corp files a Form 1120-C, and if the expenses are equal or greater to the income, there is no taxable income and no tax for the C Corp to pay.

Connie

Re: LLC TO C CORP

Djbrevik17 — Wed, 28 Jun 2023 16:59:12 GMT

how is a C corp different than an S corp? I am looking for a way to keep income completely separate from myself

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 17:05:33 GMT

C corporations file Form 1120.

See https://www.irs.gov/instructions/i1120#en_US_2022_publink11455td0e333

S corporations file Form 1120-S and there are a number of differences between an S corporation and a C corporation. However, the primary difference is that an S corporation is a pass-through entity where all of the income, loss, et al, is passed directly through to the shareholder (you) on a Schedule K-1.

S corporations do not pay federal income tax as do C corporations, but S corporations are considered separate entities, unlike sole proprietorships and single-member LLCs.

See https://www.irs.gov/instructions/i1120s#en_US_2021_publink11515kd0e283

Re: LLC TO C CORP

Djbrevik17 — Wed, 28 Jun 2023 17:10:06 GMT

do I need a new EIN to change to an S Corp?

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 17:15:10 GMT

@Djbrevik17 wrote:

do I need a new EIN to change to an S Corp?

See https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

No, assuming your LLC already has an EIN.

You do need to file Form 2553 with the IRS, however, to make the election.

See https://www.irs.gov/instructions/i2553#idm139855003812896

Re: LLC TO C CORP

Djbrevik17 — Wed, 28 Jun 2023 17:26:08 GMT

do you know how I change the LLC to an S-Corp? Is that through the secretary of State?

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 17:31:17 GMT

@Djbrevik17 wrote:

do you know how I change the LLC to an S-Corp? Is that through the secretary of State?

If you simply want to have your single-member LLC treated as an S corporation for federal income tax purposes, then you need to file a Form 2553 with the IRS (link in my previous post).

Otherwise, you need to file articles of incorporation with your state (and presumably dissolve your single-member LLC). Your state has procedures for both and you should consult with a local professional before making a decision.

Re: LLC TO C CORP

ee-ea — Wed, 28 Jun 2023 17:36:30 GMT

@Djbrevik17

File form 2553 with the IRS

https://www.irs.gov/pub/irs-pdf/f2553.pdf

Instructions here

https://www.irs.gov/instructions/i2553#idm139855003812896

Re: LLC TO C CORP

Djbrevik17 — Wed, 28 Jun 2023 17:43:02 GMT

So do I end up filing taxes under the S corp with the company EIN and then also for myself with my social security number for personal taxes on whatever I paid myself?

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 17:44:31 GMT

@ee-ea wrote:

@Djbrevik17

File form 2553 with the IRS

Again, filing Form 2553 with the IRS is fine if the goal is for the LLC to be treated as an S corporation for federal income purposes, but not for any other purpose (e.g., liability).

Re: LLC TO C CORP

Anonymous_ — Wed, 28 Jun 2023 17:46:24 GMT

@Djbrevik17 wrote:

So do I end up filing taxes under the S corp with the company EIN and then also for myself with my social security number for personal taxes on whatever I paid myself?

Yes. During the process of preparing the 1120-S for the S corporation, a K-1 will be generated.

You will then enter the information from the K-1 into your personal income tax return.