topic LLC to S-Corp to LLC Disregarded Entity in Business & farm

LLC to S-Corp to LLC Disregarded Entity

RyMo — Tue, 17 Feb 2026 14:21:15 GMT

We created our LLC in AZ when my husband and I were not married. At the time, our accountants recommended electing S-Corp status. Which we did. But now we are looking to return back to LLC tax classification. In the meantime, my husband and I are now married and since AZ is a Community Property state, can be considered a disregarded entity as an LLC.

How do I do this?

I was looking at Form 8832 and sending a statement to the IRS. But when I am filling out Form 8832, I think it is looking for only 1 owner and not both of us. Thank you!

Re: LLC to S-Corp to LLC Disregarded Entity

CesarJ — Tue, 17 Feb 2026 14:46:02 GMT

Because you're now married and Arizona is a community property state, a husband and wife LLC may be elected to be treated as either:

A partnership, or
A qualified joint venture/disregerdaded entity (reported on Schedule C)

To return from S-corp status to LLC status, you must revoke the S-corp election, not file form 8832.

To revoke S-corp status:

Submit a signed statement to the IRS stating that you are revoking the S elction under IRC 1362
It must be signed by you and your spouse (shareholders)
Must include:

Company name and EIN
Statement that you are revoking the S election
The effective date of revocation
Shareholder consent signatures

Re: LLC to S-Corp to LLC Disregarded Entity

RyMo — Tue, 17 Feb 2026 14:48:03 GMT

Will we return to LLC tax classification or a C-Corp?

I see that when someone revokes their S-Corp classification, they become a C-Corp and then must file a Form 8832 to reclassify. Is that correct? Thank you!

Re: LLC to S-Corp to LLC Disregarded Entity

CesarJ — Tue, 17 Feb 2026 15:10:53 GMT

After the revocation, you must file form 8832 to reclassify as a Partnership or a Qualified Joint Venture LLC. It's a two-step process.

@RyMo