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jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
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Whats the difference between forms 2553 and 8832

Resolved Question:

What's the difference between forms 2553 and 8832?
Submitted: 6 years ago.
Category: Tax
Expert:  jgordosea replied 6 years ago.

Greetings,

 

Form 8832 is used by a Limited Liability Company to choose to be classified for tax purposes (and to be taxed) as other than the default classification. For example, if no election is made a single member LLC is disregarded and a multimember LLC is treated as a partnership. In either of those cases if the LLC wants to elect to be taxed as a corporation the Form 8832 is used.

Form 8832 can also be used to change a prior election.

 

Form 2553 is used by a corporation to elect to be treated as a pass-through entity (Subchapter S corporation) and to indicate the tax year elected. Similar to partners in a partnership, income of an S corporation generally is taxed to the shareholders of the corporation rather than to the corporation itself.

 

See LLCs Classified as Corporations

"LLCs electing classification as an S corporation are not required to file Form 8832 to elect classification as a corporation before filing Form 2553. By filing Form 2553, an LLC is deemed to have elected classification as a corporation in addition to the S corporation classification. "

 

Please ask if you need clarification.

Best wishes.

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