Tax Election Assistance
LLC vs S-Corp vs C-Corp

Timing

IRS acknowledgment - 4–6 weeks, Final approval - Up to 90 days

If You Do It Yourself

IRS Filing Fee - $0

Delivery

Filed and IRS-stamped Form 2553 or 8832, IRS acknowledgment letter, Updated governance documents (digital copy), Summary of tax election details for CPA records

Eligibility

Read below

When you form a business entity—such as an LLC, corporation, or partnership—you’re not only choosing how the business is governed under state law, but also how it’s treated for federal and state tax purposes. The way your entity is recognized by the IRS is called a tax election.

Why It Matters
Your tax classification affects:
● How your income is reported
● How much tax you pay
● Whether you owe self-employment or corporate taxes

Choosing incorrectly—or missing an election deadline—can lead to:
● Higher tax liability
● Missed deductions
● Payroll tax issues
● Limited future flexibility for restructuring or investment

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DIY Step-by-Step Guide
(No agent or lawyer)

Common Tax Elections for Small Businesses:

Default Classification.
By default, the IRS treats a single-member LLC as a sole proprietorship, and a multi-member LLC as a partnership.

Entity Classification Election
Use Form 8832 to elect for your LLC or partnership to be taxed as a corporation (C-Corp).

S-Corporation Election.
Use Form 2553 to elect S-Corp status — allowing income, losses, and credits to pass through to shareholders, avoiding double taxation.

Eligibility:

To qualify for a tax election, your business must meet IRS criteria based on entity type and ownership structure

LLC Eligibility

Must already have an EINCan elect to be taxed as:

Sole proprietorship (default)

Partnership (default for 2+ members)

C-Corporation (Form 8832)

S-Corporation (Form 2553) — must meet IRS shareholder limits

Corporation Eligibility

Must have valid Articles of Incorporation
For S-Corp election:

No more than 100 shareholders

Only U.S. citizens or residents

Only one class of stock

Not a bank, insurance, or foreign entity

Step-by-Step Guide

Review eligibility using
IRS S-Corp Overview
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations

Complete and sign
Form 8832 for C-Corp election
‍https://www.irs.gov/forms-pubs/about-form-8832‍

Form 2553 for S-Corp election
‍https://www.irs.gov/forms-pubs/about-form-2553

Include
EIN confirmation letter
Owner/shareholder signatures

File by mail to the IRS Service Center
(listed in form instructions)

Retain your IRS acknowledgment letter for your records
Form 8832 Instructions (PDF)
‍https://www.irs.gov/instructions/i8832

Form 2553 Instructions (PDF)
‍https://www.irs.gov/instructions/i2553

Common Mistakes People Make

Filing after IRS deadline

Missing signatures or EIN

Incorrect entity name or address

Ineligible shareholders (foreign owners, multiple stock classes)

Forgetting to amend Operating Agreement/Bylaws

Not updating state records or accountant

Documents & Information Needed

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