You may have chosen to have your limited liability company (LLC) taxed for federal income tax purposes as a S corporation (S corp) as a business owner. Your company may benefit significantly from this choice in terms of taxes. But how can you be sure that the Internal Revenue Service (IRS) has accepted your LLC as a S corp?
There is no online database available from the IRS to determine whether an LLC has opted to become a S corp. However, you can check your IRS Form 2553, which is the form used to make the S corp election, to see the status of your election. If you recently submitted Form 2553, it can take some time before you can verify your election status because the IRS normally processes the form within 60 days of receipt.
Getting in touch with the IRS directly is another approach to verify your election status. To confirm your S corp election status, call the IRS Business and Specialty Tax Line at 1-800-829-4933. When you call, be prepared with your LLC’s tax identification number (TIN).
Yes, a S corp can have just one owner, but it’s crucial to remember that only specific kinds of enterprises are eligible for the S corp election. An S company must typically be a domestic business with no more than 100 stockholders, all of whom must be citizens of the United States or lawful permanent residents. Furthermore, a S corporation is only permitted to issue one class of shares.
If you are the only owner of an LLC and would like to elect S corp status, you must first create a company and then submit Form 2553 to the IRS to do so. Your corporation will be taxed as a S corp for federal income tax purposes once your election has been granted.
In conclusion, even though there isn’t an internet database to check if your LLC has been elected as a S corp, you can find out by looking at your Form 2553 or getting in touch with the IRS. Additionally, a S corp may only have one owner if certain criteria are met.