Do I need an S Corp if I'm registering for an LLC?

by thedepster. Posted on Sep 14, 2020    0    6

I've decided to incorporate a consulting business in Georgia that may eventually include one partner, but right now I'm doing everything alone. I'm confused about whether I need to become an S Corp if I'm already an LLC. I'm really new to this and I'm confusing myself.

Thanks in advance for any help.


avalpert 1

You do not need to elect to be taxed as an S-Corp if you are an LLC.

When applying for an EIN, 'LLC' is not an option - for taxes it is a disregarded entity. You would either choose to get an EIN as a Sole Proprietor, a Partnership or a Corporation depending on your elected tax status.

iBrl2020 1

You can do a designation as an S Corp within your llc. Has to be approved by the feds, but usually is.

  thedepster 1

Thanks. I got confused because on IRS Form 2553 (to elect the S Corp), I have to have an EIN. But to apply for the EIN, I have to choose between an S corp and LLC. Which EIN option should I select?

iBrl2020 2

LLC. Then designate as an Scorp!

  thedepster 1

Thank you!

iBrl2020 1

Make sure you keep copies of everything and send the irs paperwork with a tracking. Number. Our lawyer did ours. Apparently didn’t send them that way the first time, so we had to do it again.