Sole Prop to LLC as S-Corp

[SunTaxMan]

Is there any way for sole proprietor to become LLC and opt for S-Corp without new FEIN?

Any way to avoid new accounts for IRS, State withholding, SUTA.....

I didn't think so, but I figured I may just not know everything.......

[KEYWEST_RICKS]

an llc can elect to be taxed as a corporation. i forget what the form is right away. the default is to be taxed as a partnership but once you elect to be a corp you can then elect to be an s corp is all other requirements are met

[SunTaxMan]

an llc can elect to be taxed as a corporation. i forget what the form is right away. the default is to be taxed as a partnership but once you elect to be a corp you can then elect to be an s corp is all other requirements are met

I agree with your comments, but you missed the question.......

Is there any way to go from sole prop to llc without a new FEIN (and subsequent new registrations, accounts, etc.)?

By the way the S election form is 2553.

[jainen]

>>subsequent new registrations, accounts, etc.<<

You are setting up a new entity, so you will at least need a new EIN. I don't know if you can transfer the state or federal payroll accounts, but it's a bad idea. You want to establish a clear separation between the corporation assets and the owner, so the owner's liability can truly be limited.

[SunTaxMan]

Thanks,

Not just the answer I thought was the correct one, but an additonal insight - "so the owner's liability can truly be limited"

Thanks,

[jklcpa]

I agree with jainen. New entity, new accounts, new EIN.

On your application to the state for an unemployment account, the state might consider that this is an existing employer (only incorporating for liability reasons) and give you a better rate based on the sole prop's history as an employer.