How to File IRS Form 8832: C-Corp Election
IRS Form 8832 is used to elect classification for federal tax purposes. It is most often used by an LLC wishing to be taxed as a C-Corp.
Introduction
IRS Form 8832 is also known as "Entity Classification Election". The IRS offers three tax classification "entities" to businesses: a corporation (C-Corp tax election), a partnership, or an entity disregarded as separate from its owner. This form is used to elect a new tax classification "entity".
If your business is an LLC with multiple owners, then it is classified as a partnership by default. You can use Form 8832 to elect to be taxed as a C-Corp. If you want the LLC to be taxed as an S-Corp, see Form 2553.
If your business is a corporation, then it is taxed as C-Corp by default. You do not need to file Form 8832.
How to File
To elect C-Corp treatment:
- Submit to:
- Internal Revenue Service
http://www.irs.gov/ - Form:
- Form 8832: Entity Classification Election
- Guidance:
- IRS.gov - Information on Form 8832
- Filing Method:
- Mail or fax
- Fee:
- $0
- Preparation:
- ~7 hours (IRS estimate)
- Turnaround:
- Within 60 days
- Notes:
- You will receive acknowledgment and approval from the IRS. If not, follow-up with the Service Center where Form 8832 was filed.
When you file with the IRS, your election only applies to federal taxes. To obtain C-Corp tax treatment for state taxes, you may need to file additional documents with your state department of revenue or other taxation authority.
