Change in entity type

[Corduroy Frog]

A client has approached me about changing her LLC from a partnership (1065) to a subchapter S (1120-S)

She believes this will reduce SE tax.  I know this is not totally true.

Admitting to my ignorance, honestly I don't know how to do it, or if it can be done without shutting down the partnership and beginning another entity from scratch.

Can someone furnish a link to IRS code or reg if it is allowed.  A link to a published commentary containing advice would also be helpful.

 

[Lion EA]

https://www.irs.gov/pub/irs-pdf/i2553.pdf

[Lion EA]

I can't paste a link, but CPA PracticeAdvisor just announced a FREE webinar by CorpNet:

S Corporation Election Considerations for Corporations and LLCs

Wednesday 26 February 1:00 EDT

[jklcpa]

Here are 2 articles worth reading:

https://www.thetaxadviser.com/issues/2022/oct/10-good-reasons-why-llcs-should-not-elect-s-corporations.html

https://www.hinckleyallen.com/publications/converting-an-llc-to-an-s-corporation-a-mistake-waiting-to-happen/

[Corduroy Frog]

Thank you ladies.