Maybe your business situation has changed and now you need to change your entity from a Limited Liability Company to an S Corporation.
Below are 2 options for converting your LLC to an S Corporation:
–Change ONLY the tax status of the entity, but not change the entity
–Change the tax status AND the entity
Change ONLY the tax status: An election can be made to be taxed as an S Corporation while retaining the structure of an LLC. To change an entity’s tax status to be treated as an S Corporation but stay an LLC, file a Form 8832 (Entity Classification Form) with the IRS. Once it is classified as a Corporation, it can file a Form 2553 to be taxed as an S Corporation.
Change the tax status AND the entity: To change your entity’s structure from an LLC to a corporation requires the LLC to actually convert to a Corporation with the formation state’s agency that handles corporate filings.With this option, the LLC is converted a Corporation with the state. Then it can also request to be an S Corporation for tax purposes.In Colorado the conversion process for converting an LLC to a Corporation includes filing with the state a new corporation with the same name & simultaneously canceling the LLC, sending a letter to the IRS telling them of the change in structure, and electing to be an S Corp (by filing an S Election Form 2553).