Answers
New business, LLC & S-Corp
Asked by:
t — 6 April, 2013
I’m forming a new business in California (LLC) and electing to do s-corp. Do I do LLC first & file s-corp? Or do I go straight to forming s-corp?
Answered by:
admin — 6 April, 2013
Dear Visitor,
“S-Corp Election” is an election with the IRS (and in some cases with the state too, but not in California), electing the entity to be taxed under Subchapter S of the IRS. The entity can be LLC or Corporation, and the difference is in the entity structure.
So first you need to decide if you want your company to be organized as LLC or as Corporation, and then after the entity was formed you can proceed with electing it as “S-Corp” with the IRS.
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