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It's not to late for the IRS S election. You will need to state the reason for not making this election on time. You might have more issues with the state election. Some states do not allow retroactive elections. Those state that do, will require you to pay a fee. You don't avoid SE tax completely. You need to be reasonably compensated by the LLC. That means, you need to be on the payroll.
BM911 is absolutely right. And I would also keep in mind that 50% of self-employed taxes are deductibe.
Hi - I have an LLC which has not been active for years. I would now like to use the LLC for 2010 rather than having clients pay me as a 1099 contractor. Is it too late to file for S-Corp status for 2010 so that I do not have to pay self-employment taxes for all of the fees collected? I have been reviewing Form 2553 - not sure if I qualify under Revenue Procedure 2007-62 to apply retroactively. Thanks for any help/guidance anyone can provide!