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Discussion Starter · #1 ·
How flexible is the IRS if you want to change from a Sole-P to a LLC or the other way around? Will they allow it at all?
 

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You should ask a tax specialist. Having said that, I don't think you switch. When you form an S-Corp or LLC you stop being a sole proprietorship, and you do business as a completely different entity, even if it has the same name. You then file corporate taxes and the profits are (usually) pass-through income on your personal taxes.

R.
 

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Discussion Starter · #3 ·
I contacted the IRS directly and they told me that you would need to complete and return FORM 8832 CHANGE OF ENTITY. I will be keeping my current LLC, I was just curious that would all work if one wanted to switch. Thanks for your advice though Entropyguy :)
 

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If switching, I would do it at the end of your tax filing year, as tax liability is different for each business type, and to do this switch in the middle of a tax year would probably cost you more in tax preparation fees by your accountant.
 

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I contacted the IRS directly and they told me that you would need to complete and return FORM 8832 CHANGE OF ENTITY. I will be keeping my current LLC, I was just curious that would all work if one wanted to switch. Thanks for your advice though Entropyguy :)
Sorry, I thought you were changing from a SP to a LLC or S Corp. Hmmmm, I wonder if I was supposed to file a FORM 8832 when I switched...oh well, that was 14 years ago, surely I am in the clear. Heh.

R.
 
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