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    1 Reply Latest reply on Nov 21, 2008 10:45 PM by Elite1

    Switching from LLC to S Corp

    therapy4kids Newbie

      My first question is can I continue to use my current TID? Switching with current vendors may get complicated. My net income for this year will be over 100k and in research it appears that I will be able lower my tax burden by shifting a portion of my income to dividend income. Next year's income will be even higher. Not needing any type of payroll service and making draws as needed has been nice. My goal is to make the switch January 1st. Any thoughts?
        • Re: Switching from LLC to S Corp
          Elite1 Adventurer

          An LLC is created by the state. The IRS does not recognize an LLC as a separate tax classification. They classify you as a corporation, partnership or sole proprietor. I assume you are currently being taxed as a sole proprietor or partnership. In either case, the answer is yes. You need a new EIN if you are changing your tax classification. If you want confirmation of this or to accomplish this via telephone, the IRS business number is 1-800-829-4933.

          In order to switch to an S Corp you simply need to file IRS Form 2553.

          Hope this helps.


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