LLC to C-corp

[howard_two]

Can an LLC be reverted to a C-corp later on?:coco:

 

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[andviv]

There was a similar thread here in the past...
Check that one to see if that helps.
http://www.thefastlanetomillions.com/showthread.php?t=10894

 

[howard_two]

There was a similar thread here in the past...
Check that one to see if that helps.
http://www.thefastlanetomillions.com/showthread.php?t=10894

Thank you for the digg andviv...
The best answer to this was by AroundtheWorld whom I quote here for educational purposes:

To answer your origional question: I'll just tell you a story.

I had an LLC, and I needed to change to an S-Corp. I called the IRS. A representative told me that I could keep the same EIN number, I just needed to fill out a form. (I don't remember the number).

I told my accountant. She said, "I have never heard of that" but she looked it up and confirmed that I could fill out that form. We did and went about business as usual.

One year later, I got a call from the IRS. "You can't keep the same number when you switch from an LLC to an INC. We issued you a new number. Here it is." I said, "Yes you can. I was told about form xxx from an IRS rep and I filled it out."

They said. "no you can't."

It was pointless to fight it, as they had already issued a new number.

It caused a huge headache. I had employer payments getting filed under one number and forms getting filed under the other number. I had letters from the IRS stating that I had not payed my employer tax under one number, and letters stating that I had money sitting there, but no return on the other number.

​

Thus the answer to this question is yes I can switch an LLC to C-corp but it'll cost me a lot in the long run. So NOT WORTH IT. :smx9:

 

[MsChristina]

An LLC MAY be able to be converted a corporation depending on the state where the LLC is formed (some states allow for a statutory method of converting an LLC to a corporation, others do not).

Another alternative is to make a special election with the IRS to have an LLC be taxed as if it were a corporation. This is done by filing IRS Form 8832. With this method, the LLC retains its characteristics as an LLC from a legal standpoint but is treated as it were a corporation purely for tax purposes.

 

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