[GA] [GA] Which LLC forms update when electing S-Corp tax status?
Does eForms have a form for GA SMLLC who later chose to be taxed as an S Corp (formerly taxed as a Disregarded Entity)?
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Quick Answer: You generally don’t need to update your Georgia LLC Operating Agreement when electing S Corp tax status, as the tax election doesn’t change the LLC’s legal structure. However, it’s a good idea to review and possibly amend the Operating Agreement to reflect the S Corp election for clarity and compliance with IRS requirements.
Detailed Answer: Electing S Corp status for your Georgia Single-Member LLC (SMLLC) changes how the IRS taxes your business (from a disregarded entity to an S Corporation), but it doesn’t alter the LLC’s legal structure under Georgia law. The Operating Agreement is a legal document governing the LLC’s operations, not its tax status, so an S Corp election typically doesn’t require an immediate update.
However, there are some important considerations:
1. Why You Might Not Need to Update: The Operating Agreement usually focuses on ownership, management, and operational rules, which remain unchanged by the S Corp election.
2. When You Should Consider Updating: If your current Operating Agreement includes provisions that conflict with S Corp rules, you may need to amend it to ensure compliance.
3.Practical Steps:
- Review the existing agreement
- Consult a professional
- Amend if necessary
- Maintain compliance with S Corp requirements
4. Regarding eForms: The S Corp election is made by filing IRS Form 2553.
5. Next Steps: Confirm that Form 2553 was properly filed and accepted by the IRS, and ensure your tax filings are updated accordingly.
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Does eForms have a form for GA SMLLC who later chose to be taxed as an S Corp (formerly taxed as a Disregarded Entity)?
I understand your situation. Have you already formed the Georgia SMLLC and now want to elect S Corp tax status for it?
No. This has all been done since 2022. Just playing catch up with paperwork.
Are you looking for specific guidance on how to file the election for S Corp tax status with the IRS?
No
Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with your tax election.
Do we have to update a GA LLC Operating Agreement when we elected to be taxed as an S Corp the following year?
Hello! Welcome and thank you for your question. My name is Joel and I am a Finance, Tax, Capital Gains and Losses, and Social Security expert with over 16 years of experience.
I am reviewing your question now and will be with you shortly. In the meantime, feel free to provide any other relevant details.
Thank you Joel. It’s a pretty straightforward question. I look forward to your response.
Quick Answer: You generally don’t need to update your Georgia LLC Operating Agreement when electing S Corp tax status, as the tax election doesn’t change the LLC’s legal structure. However, it’s a good idea to review and possibly amend the Operating Agreement to reflect the S Corp election for clarity and compliance with IRS requirements.
Detailed Answer: Electing S Corp status for your Georgia Single-Member LLC (SMLLC) changes how the IRS taxes your business (from a disregarded entity to an S Corporation), but it doesn’t alter the LLC’s legal structure under Georgia law. The Operating Agreement is a legal document governing the LLC’s operations, not its tax status, so an S Corp election typically doesn’t require an immediate update.
However, there are some important considerations:
1. Why You Might Not Need to Update: The Operating Agreement usually focuses on ownership, management, and operational rules, which remain unchanged by the S Corp election.
2. When You Should Consider Updating: If your current Operating Agreement includes provisions that conflict with S Corp rules, you may need to amend it to ensure compliance.
3.Practical Steps:
- Review the existing agreement
- Consult a professional
- Amend if necessary
- Maintain compliance with S Corp requirements
4. Regarding eForms: The S Corp election is made by filing IRS Form 2553.
5. Next Steps: Confirm that Form 2553 was properly filed and accepted by the IRS, and ensure your tax filings are updated accordingly.
Does this address your question? If you have additional details or further questions, I’m happy to help.
It sure does. Thank you so much Joel!
Thank you for the opportunity to assist you. I believe I have answered your question to the best of my abilities, but do not hesitate to reach out if you have follow-up questions.
Joel Salas, EA
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