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An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election PDF, to elect how it will be classified for federal tax purposes.
The biggest difference between Form 8832 and Form 2553 is the tax classification that youre requesting. If youre an LLC or partnership, use Form 8832 if you want to be taxed as a C-corp, partnership, or a sole proprietor. Meanwhile, Form 2553 is for LLCs or corporations that want to be taxed as S-corps.
Generally speaking, changing a businesss structure involves: Filling out legal forms. Making legal documents. Filing those documents and forms with your state (and paying fees). Transferring liabilities and assets to the new business entity. Ending the prior business entity, if applicable.
LLC treated as a corporation Business type If you want your LLC to be taxed as a corporation, you must file an election with the IRS. Use Entity Classification Election (Federal Form 8832) .
An LLC can elect to change its classification. Generally, once an LLC has elected to change its classification, it cannot elect again to change its classification during the 60 months after the effective date of the election.

People also ask

Business classification involves grouping businesses into different sectors based on the activities conducted by the business. Business classification is basically of two types: industry and commerce. Classification of Businesses: Features Differences - StudySmarter studysmarter.co.uk introduction-to-business studysmarter.co.uk introduction-to-business
You can also use Form 8832 to change your current classification. As long as you meet the IRS requirements for a particular tax status, you can fill out Form 8832 to switch at any time. Note that there are also other small business tax forms you may need to file when youre starting a business.
An eligible entity uses Form 8832 to elect how it will be classified for federal tax purposes, as: A corporation. A partnership. About Form 8832, Entity Classification Election | Internal Revenue Service irs.gov forms-pubs about-form-8832 irs.gov forms-pubs about-form-8832
How to find your NAICS code Enter what your business does into the NAICS Search box, then click Go. Click the business activity code of the result that most closely matches your business. Verify that the description and information are actually what your business does. What is a NAICS Code? Learn How To Find Yours - FAMR famr.us learn naics-codes famr.us learn naics-codes
How to change your category on a Google Business Profile Log in at business.google.com. Click Info on the left. Click the pencil icon to the right of to your business category (see image) In the pop-up window, type in your new category and select the best fit. Click Apply Youre done!

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