First Step: Register as an LLC Filing as an LLC with your state is the first step in establishing an LLC as an S-Corp. This include deciding on a company name, designating a registered agent, and submitting your articles of incorporation to the state. You will receive a Certificate of Organization once your application has been accepted, designating your LLC as a legitimate business.
Step 2: Submit Form 2553 It is necessary to submit Form 2553 to the IRS in order to opt to be taxed as an S-Corporation. Within 75 days of the commencement of the tax year for which you want to be taxed as an S-Corp, you must submit this form. You must fill out the form with details about your LLC, including its name, address, and tax ID number.
Step 3: Obtain a Form 8862
You must complete Form 8862 after filing Form 2553 in order to take advantage of any S-Corps-eligible credits. This form, which you must submit each year along with your tax return, is used to claim the Small Business Health Care Tax Credit.
Step 4: Submit Your Tax Return Your LLC will be required to submit an annual tax return using Form 1120S as an S-Corp. The LLC’s owners are then informed of the income, credits, and deductions reported on this return. A Schedule K-1 will be provided to each owner outlining their portion of the LLC’s earnings and deductions.
In conclusion, creating an LLC as an S-Corp entails registering as an LLC with your state, submitting Form 2553 to the IRS, filling out Form 8862 to apply for any possible credits, and submitting Form 1120S, the annual tax return. Although the process could appear difficult, your company will gain greatly from the tax advantages and liability reduction.
You cannot email the IRS directly, so that is out of the question. You can send and receive messages securely through your online account using the IRS’s secure messaging system, though. The IRS does accept online fax sent through authorized providers, according to this.