Hi all,
I started an LLC a couple years ago to do some side gigs and made s corp election. Now realizing I'm not making enough to justify the extra payroll/compliance costs and want to go back to being taxed as LLC. There aren't any assets held in the s corp. Can I just send the IRS a letter revoking s corp election, file a final year 1120-S, and start reporting on schedule C next year? Or do I also need to file 8832 to say I want to be taxed as disregarded entity
Converting from s corp back to LLC
byu/Key-Standard4237 intax
Posted by Key-Standard4237
2 Comments
You need to file 8832. You can actually file just Form 8832 and it will auto revoke the S election as well. If you just revoke the S election the entity would technically be taxable as a C Corp.
What’s the side hustle/gigs?