In short
The check-the-box regulations let an eligible business entity that isn't a corporation under state law, such as a limited liability company, choose how it is taxed by filing Form 8832.
Key takeaways
- By default, a domestic entity with several owners is a partnership, and one with a single owner is disregarded.
- An entity electing corporate status can then make an S corporation election.
- After changing its classification, an entity generally can't change again for 60 months.
Where it's tested
TCP: Entity Choice & Structuring — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A limited liability company has one member, an individual, and has made no election. How is it classified for federal income tax?