Requirements for having an LLC taxed as a C Corp?

Question

Hi,

I've set up an LLC in Wyoming and I'm wondering what needs to be done in order to have it taxed as a C Corp.

Any help would be greatly appreciated.

Thank you,

Doug

Basit Siddiqi · Answer

A single member LLC, by default, is a disregarded entity. You would need to file paperwork for it to be taxed as a Corporation.

A multi-member LLC, by default, is a partnership. You would need to file paperwork for it to be taxed as a corporation.

You should have a conversation with an accountant prior to making the election as it may be difficult to undo.

Jerry W. · Answer

@Doug Frisch, welcome to BP bud.  First I agree, consult with a tax accountant on what form of taxing is best for you.  Next the only thing you file in Wyoming is your annual report.  It is usually $50 a year unless you own a lot of property in WY.  Wyoming does not have any state tax.  Best of luck in your investing.

Martin M. · Answer

@Doug Frisch

Have a conversation with an accountant about which tax classification is best for your LLC. If you think that's Corporation then what you do is  'elect' to be taxed as a Corporation by filing IRS form 8832. (You may not need a corporation at all though. Again talk to a CPA)

Also keep in mind your LLC Operating agreement should likely list the tax classification of the LLC that you choose. Even if it's just the default of 'disregarded'. Hope this helps

David M. · Answer

@Doug Frisch

Should we be wondering why you want to elect to have your LLC taxed as a C Corp?  And why in a real estate investing forum since it generally not advantageous to hold property in C or S Corp entity?

I haven't worked with Wyoming, but I thought when you form an entity you can select a C Corp or LLC....  But, I believe you can still make that election post-forming for a LLC.  Its just an IRS form to file to make the election.  Not sure what you file with WY --- I vague thought they had a corporate tax.

You really should be consulting a qualified professional about this, especially if you aren't sure how to even make the election.

Good luck.

Requirements for having an LLC taxed as a C Corp?

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