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Remove Checkbox in the Tax Sharing Agreement

Remove Checkbox in the Tax Sharing Agreement and eSign it in minutes

Aug 6th, 2022

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

What happens if an LLC does not file form 8832?

An LLC that is not automatically classified as a corporation and does not file Form 8832 will be classified, for federal tax purposes under the default rules. An LLC that has one member will be classified as a disregarded entity. A disregarded entity is one that is disregarded as an entity separate from its owner.

What is the check the box election on form 8832?

The Check the Box Election refers to how the an entity will be treated for US tax purposes. As provided by the IRS: Unless an election is made on Form 8832, a domestic eligible entity is: A partnership if it has two or more members.

What happens if you dont file Form 8832?

If you dont use Form 8832 to make an election, the IRS will tax you based on your default entity classification, and you could end up paying more than you need to. By making the proper election, however, you may be able to save thousands of dollars every year.

How late can you file Form 8832?

There is no formal deadline for filing Form 8832, but when you file it, it can have implications on when your new tax classification kicks in. For instance, your new classification cannot take effect more than 75 days prior to the date the election is filed or later than 12 months after filing, ing to the IRS.

How long does it take for the IRS to process form 8832?

The IRS will accept or deny your Form 8832 filing request within 60 days. The acceptance or denial letter will go to the address you listed when completing your form. If 60 days go by and you dont hear anything, call the IRS at 1-800-829-0115 or send a letter to the service center to check on the status of the form.

Is Form 8832 required?

Do I have to file Form 8832? No, this is an optional form that is filed if you would like your LLC to be taxed as a corporation. After it is filed, your LLC will file a corporate tax return and be subject to corporate tax rates.

Does LLC have to file 8832?

A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation.

Do you have to file form 8832 every year?

Theres no need to file Form 8832 a second time unless you want to change your entity classification again. However, in most cases, you can only change your classification once every five years, so you may have to wait.

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