Husband and Wife LLC in MD can be taxed as "S" corporation?

Question

I have a friend who just began business in MD as a 50/50 husband and wife LLC. Just want to confirm with you with knowledge that they can choose to be taxed as a "S" corporation. What do we need to do to do it correctly? Thanks guyes always.

Answer 1

I see no reason why an LLC could not become an S corporation. An LLC can elect to be treated as a corporation for all federal tax purposes, which includes subchapter S. First the LLC must elect to be treated as a corporation, and then it must make the S election. Both elections can be made effective simultaneously.

Note that the LLC can elect to be treated as a corporation retroactively up to 75 days. This means that if less than 75 days have passed since the LLC was formed, it can elect to be a corporation from the moment it came into existence. Otherwise, it will be treated as a partnership until the effective date of the election and as a corporation thereafter.

Of course, you should verify this with a professional advisor, who can also advise you as to the desirability of electing to be a partnership, C corporation, or S corporation.

Answer 2

An LLC can choose to be taxed as a Corporation using the check the box system, but not as an S-corporation. They can check the box on schedule B, page 2 of the Form 1065 which essentially means that they are making an election under IRC §6231(a)(1)(B)(ii) or filing form 8893.

Answer 3

The chop up letter, God's digital mail and definition of spouse and mom were merely too good. the following day morning the first ingredient i'd be doing ofcourse after brushing my teeth might want to be telling them to my associates! You deserve numerous stars! ok my personality map isnt permitting me to replica stars, so please regulate with those hearts! ??????????????????????????????????????..... LOL God knows what percentage thumbs down i will get for this one! besides, Cheers! :) Rudra