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Taxing LLC as S Corporation

Taxing LLC as S Corporation

Taxing LLC as S CorporationTaxing LLC as S Corporation

Taxing LLC as S Corporation is my question.  How do I  set up my LLC to be taxed as an S corporation rather than partnership, what forms do I need to fill out (I’m in Indiana)?  And where do I send those forms? I’m one of Lee’s students and I have 2 questions I was wondering if you could help me with this.

Thanks much! Sabrina G.

A. I f you plan on taxing LLC as S Corporation you go to the IRS.  There are IRS forms you must fillout in a timely manner.   These are federal forms, not Indiana State specific forms.  First you need the SS4 tax id.  Then form 8832 should be filed to create a corporation.  After your corporation is in place, about a week later form 2553 needs to be filed.  This is the form that designates the corporation as an S corporation.  Get these forms from  Do you have the accumulation and preservation of wealth set or the LLC Wizard set?  The LLC Wizard goes through all of this in detail (line by line).

Question 2.  I’m looking to set up the bank checking account for the LLC.  Should I put the account in the name of the LLC or should a trust be set up for this?

A. The account needs to be in the name of the LLC.  The trust is the member of the LLC and the trust owns the LLC, not you.  This avoids probate on the LLC when you die.   If you are doing an S corporation, the trust has to be a “special form” of living revocable trust.  The trusts in the Accumulation and Preservation of Wealth Course are sub S qualified trusts, because of their wording.

  1. How are you Mr. Phillips

    On the SS 4 form on line 10 and line 17 how specific do I have to be
    explaining the type of business.

    • Derek,

      Line 10 can be more general about what type of business you are conducting. Line 17 should be more specific. In Line 17 you need to be more specific then what you check in line 16.

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