" Husband and Wife" LLC elect to be S Corp last year. This year want to remove husband from ownership, and have the wife as single owner. What should we do? Thanks

Forum|Forum|6 years ago
June 1, 2019
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We filed form 2553 as S Corp last year. After we remove husband from LLC report this year, do we need to report to IRS about the changing of ownership? Thanks

Best answer by PatriciaV

Yes, you must file a statement with the IRS that revokes the S-Corp election. This is done in a letter; the IRS has no form for this revocation. This link may be helpful: http://smallbusiness.chron.com/terminate-s-corp-election-revert-llc-23511.html

Note that a single-member LLC is disregarded by the IRS for tax purposes. This means the business activity is reported on Schedule C of the owner's personal tax return.

PatriciaVAnswer

Employee

Note that a single-member LLC is disregarded by the IRS for tax purposes. This means the business activity is reported on Schedule C of the owner's personal tax return.

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tbsp1088Author

Employee

Thank you for the responding. Just to clarify, I, as a single memeber of LLC, still want to be taxed as S Corp. So should I send a letter to IRS for removing my husband?