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What an awesome product. We use accord forms so often in this office that it is nice to have help! We like that most accord forms we use are already available from the site, but more so than that, the fact that we can upload our own documents as well. When you have to generate 150 certificates for one client, all different, this program makes that process seamless. The site runs very well, have not had to deal with freezing issues or losing extensive work because it didn't save, the site always saves my work for me. We just couldn't be more happy with the service. There is not a lot that we do not like about the program, but one thing sticks out for sure. If one of my agents is logged on to the site and another agent logs in, the first agent will usually be kicked off. This was not really even an issue since the system always saved the agents work, and all of my agents will announce now that they are logging in.
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Specifically, your corporation tax status must become effective within the 75-day period before the filing date or within 12 months after the filing date. To make the election, complete and file IRS Form 8832, Entity Classification Election. The form is fairly simple and mainly involves checking off a few boxes.
Meaning: A Single-Member LLC currently taxed as a C-Corporation can file Form 8832 and revert back to being taxed as a Sole Proprietorship. A Multi-Member LLC currently taxed as a C-Corporation can file Form 8832 and revert back to being taxed as a Partnership.
For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless if files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.
A LLC can file a Form 1120, U.S. Corporation Income Tax Return, only if it has filed Form 8832 - Entity Classification Election to elect to be treated as an association taxable as a Corporation.
The three primary options for LLC tax classification include disregarded entity, partnership, and corporation. Within the corporate classification, two sub-options include C corporation and S corporation. Some of these classifications require forms to be filed with the IRS while others occur by default.
Check with the IRS Call the IRS Business Assistance Line at 800-829-4933. The IRS can review your business file to see if your company is a C corporation or S corporation based on any elections you may have made and the type of income tax returns you file.
An entity taxed as an S-Corp by contrast is a pass-through entity not taxed separately from its shareholders, thus it incurs a single level of tax at the shareholder level. Nonprofit/Tax Exempt entities are not taxed as a C-Corp or an S-Corp but rather apply for tax exempt status with the IRS.
An S corporation is designed to provide a small business owner with the advantages of incorporation without the negative taxation witnessed in a regular corporation. When an S corporation performs services for another business, the S corporation must complete Form W-9 to provide important information to the employer.
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