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Tax, SDIRAs & Cost Segregation

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Joseph Almeida
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LLC bank account while being recognized as a S-Corp

Joseph Almeida
Posted Mar 19 2024, 16:25

I formed my business as a LLC in November 2022 my accountant then formed an S-Corp with the same business name in march 2023 NY state back dated my S-Corp to November 2022 I didn't know I needed to open a new bank account with my new S-Corp tax ID #. I used the LLC bank account all 2023 and now my accountant is saying I need to file under the LLC which the difference in what I will owe is $9600.00 filing as an LLC as apposed to filing as a S-Corp which i would owe $2000.00.

Is there anyway to file as an S-Corp or am I stuck?

Thanks in advanced.

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Zachary Jensen
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Zachary Jensen
Tax & Financial Services
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  • San Diego, CA
Replied Mar 19 2024, 17:17
Quote from @Joseph Almeida:

I formed my business as a LLC in November 2022 my accountant then formed an S-Corp with the same business name in march 2023 NY state back dated my S-Corp to November 2022 I didn't know I needed to open a new bank account with my new S-Corp tax ID #. I used the LLC bank account all 2023 and now my accountant is saying I need to file under the LLC which the difference in what I will owe is $9600.00 filing as an LLC as apposed to filing as a S-Corp which i would owe $2000.00.

Is there anyway to file as an S-Corp or am I stuck?

Thanks in advanced.


 Hey Joseph, 

Im a bit confused. Why didn't you simply elect this LLC to be taxed as an s corp, rather then forming a new entity?

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Joseph Almeida
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Joseph Almeida
Replied Mar 19 2024, 17:30

As far as I know in ny state you have to actually form a new entity to file as an Scorpio? Which gives me a new tax I'd # and since my bank account was opened with the LLC tax number I'm supposedly stuck filing as LLC? Even though I'm recognized as an scorp?

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Replied Mar 19 2024, 19:47

Not a CPA or tax professional.

I’ve never audited every single line item of my S-Corp tax returns for over 18 years, and I’m truly curious why it really matters in one years instance, what corporate account was used to conduct business, as long as the financial information is accurate and correctly reported from said dedicated business account.This should be a separate issue from proper and legally correct business operations, ie a checking account with correct tax ID, no outside commingling of funds with self or other business entity. I find it hard to believe the IRS is interested in splitting this “hair” in a punitive way, as a new business entity starting out. Sure, your corporate veil protections are tied to how strictly you follow detailed practices, but the IRS could care less I imagine, as long as the return is correct.

I mean, so what if you file as S-Corp? It matches the dates for the year you’re filing. I guess if the IRS wants to ask bizarre questions about the account number (seems absurd) you just say, “whoops, look at that, I’m new to this, I’m so sorry, I’ll make sure I correct that ASAP.” They still have an accurate filing.

Perhaps this is all your accountants fear of some sort of liability blow back? Could be I guess.

But, what do I know.

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Benjamin Weinhart
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Benjamin Weinhart
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Replied Mar 20 2024, 06:56
Quote from @Joel Forsythe:

Not a CPA or tax professional.

I’ve never audited every single line item of my S-Corp tax returns for over 18 years, and I’m truly curious why it really matters in one years instance, what corporate account was used to conduct business, as long as the financial information is accurate and correctly reported from said dedicated business account.This should be a separate issue from proper and legally correct business operations, ie a checking account with correct tax ID, no outside commingling of funds with self or other business entity. I find it hard to believe the IRS is interested in splitting this “hair” in a punitive way, as a new business entity starting out. Sure, your corporate veil protections are tied to how strictly you follow detailed practices, but the IRS could care less I imagine, as long as the return is correct.

I mean, so what if you file as S-Corp? It matches the dates for the year you’re filing. I guess if the IRS wants to ask bizarre questions about the account number (seems absurd) you just say, “whoops, look at that, I’m new to this, I’m so sorry, I’ll make sure I correct that ASAP.” They still have an accurate filing.

Perhaps this is all your accountants fear of some sort of liability blow back? Could be I guess.

But, what do I know.


 That's my assumption is that it may cause a liability issue depending on how the state laws are worded. Seems like a pretty simple fix to call up the bank and update them that the entity is now an S-corp with this fancy new tax ID, possible they'd have to create a new account for it. I've always thought that so long as the intent is there, the details can be corrected after-the-fact in a lot of cases (not all). I am a bit confused as to why you have a $7,600 swing by changing entity type, I could see it causing some difference in accountant fees at the very least if you're including them in that, and maybe something with SE tax, but $7,600 for a new business seems a little much.

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Zachary Jensen
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Zachary Jensen
Tax & Financial Services
  • Accountant
  • San Diego, CA
Replied Mar 20 2024, 07:34
Quote from @Benjamin Weinhart:
Quote from @Joel Forsythe:

Not a CPA or tax professional.

I’ve never audited every single line item of my S-Corp tax returns for over 18 years, and I’m truly curious why it really matters in one years instance, what corporate account was used to conduct business, as long as the financial information is accurate and correctly reported from said dedicated business account.This should be a separate issue from proper and legally correct business operations, ie a checking account with correct tax ID, no outside commingling of funds with self or other business entity. I find it hard to believe the IRS is interested in splitting this “hair” in a punitive way, as a new business entity starting out. Sure, your corporate veil protections are tied to how strictly you follow detailed practices, but the IRS could care less I imagine, as long as the return is correct.

I mean, so what if you file as S-Corp? It matches the dates for the year you’re filing. I guess if the IRS wants to ask bizarre questions about the account number (seems absurd) you just say, “whoops, look at that, I’m new to this, I’m so sorry, I’ll make sure I correct that ASAP.” They still have an accurate filing.

Perhaps this is all your accountants fear of some sort of liability blow back? Could be I guess.

But, what do I know.


 That's my assumption is that it may cause a liability issue depending on how the state laws are worded. Seems like a pretty simple fix to call up the bank and update them that the entity is now an S-corp with this fancy new tax ID, possible they'd have to create a new account for it. I've always thought that so long as the intent is there, the details can be corrected after-the-fact in a lot of cases (not all). I am a bit confused as to why you have a $7,600 swing by changing entity type, I could see it causing some difference in accountant fees at the very least if you're including them in that, and maybe something with SE tax, but $7,600 for a new business seems a little much.


 I agree here. Form 2553 exists just to be recognized as an S corp and that should take 30 minutes at most to do.