Is there a deadline for converting a small business from an LLC to an S-corp for the year?

bchezek
bchezek Member Posts: 3 Newcomer
in Credits/Deductions

Is there a deadline for converting a small business from an LLC to an S-corp for the year?

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  • JMSSGV
    JMSSGV Member Posts: 74 Level 5

    An LLC and an S-Corp are not mutually exclusive. An LLC can be an S-Corp or a single-member LLC (sole proprietorship.)

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  • KeriC
    KeriC FreeTaxUSA Agent Posts: 97

    An S-corp election must be filed within 2 months 15 days of the beginning of the tax year. For a calendar year business wanting to elect for 2023, the deadline was March 15, 2023.

    If you missed the deadline for an S-corp election for 2023, you can make the election to begin as an S-corp in 2024 by filing Form 2553 by March 15, 2024.

    It is also possible to file a late election for 2023. You can find the criteria and instructions for a late election beginning on Page 2 under Relief for Late Elections at https://www.irs.gov/pub/irs-pdf/i2553.pdf

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