Question

LLC TO C CORP

Forum|Forum|2 years ago
June 28, 2023
2 replies
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can a single owner change from an LLC to a C corp for taxes to keep separate from filing with personal taxes?

Ask the Experts - Energy - June 2023

Employee

@Djbrevik17 wrote:

can a single owner change from an LLC to a C corp for taxes to keep separate from filing with personal taxes?

Yes, but you will have to file Form 8832 in order to do so.

See https://www.irs.gov/pub/irs-pdf/f8832.pdf

Note that you should seek an in-person consultation with a local tax professional prior to making this decision.

D

Djbrevik17Author

With only 1 employee (self) how does that work for federal unemployment tax and social security tax? Do I end up paying that twice then once I file my own personal taxes with a 1040?

C

conniem123

If you create a C Corp, the C Corp may have payroll, which can include yourself. The C Corp will file payroll reports, including the Form 940 for unemployment and the C Corp pays the unemployment tax.

For the social security tax, the C Corp will file payroll reports, including the Form 941, to submit the social security tax. Half of the social security tax, or 7.65%, is withheld from the employee wages, and the employer (the C Corp) is responsible for the other half of the social security tax, or 7.65%.

You do not pay any social security tax when filing an individual income tax return, only income tax.

Hope you find this helpful!

Connie

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