I started my consulting company at the beginning of the year, with the intention of creating a single member LLC on Jan 1. I also intended to elect S Corp taxation for the same date. But due to some uncertainty about whether this would be the best vehicle and tax status for my business I had to wait until December 1st, a few days ago, to form my LLC. My LLC is now active.
I'm now completing form 2553. Can I use Jan 1st, 2025 as my effective date, asking for late election relief back to that day? Or do I have to use a date on or after Dec 1? I've already set up my payroll accounts to pay myself reasonable compensation, all reported for Nov and Dec wages.
And…if I have to use Dec 1 as my effective date, can I still report ALL of my 2025 income and expenses through my new LLC/ S corp on form 1120S? Or just December activity?
Posted by TeeBuyTime