Level 3

S corp election for a non LLC partnership

Forum|Forum|5 years ago
November 18, 2020
2 replies
14 views

I have a partnership, in Oregon, non-LLC...wanting to elect s corporation using the "check the box" on form 2553. My question is does this business need a new EIN? I can find the an LLC partnership does NOT, and being that the LLC is a state and not a federal issue, would the same apply? i also have conlcluded only the form 2553 is needed and the 8832 is NOT. any comments?

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T

TaxGuyBill

Level 15

Is this business a registered "entity" of some sort (something similar to a LLC)? If not, a Partnership can't elect to be taxed as anything other than a Partnership. If the business wants to be taxed as a S-corporation, they need to form an "entity", such a corporation or LLC (or some states have other options, another post today was discussing a registered "Professional Association" with the State).

If they do form a brand-new "entity", yes, they will need a new EIN.

thompsonAuthor

Level 3

I've found a number of articles and the instructions for forms that say a partnership can elect to be taxed as an S corporation. Revenue Ruling 2009-15 allows for a partnership to elect association status and convert to S at the same time. so it appears federally allowed..

are you referring to oregon Law?

sjrcpa

Level 15

I read the Rev Rul and it is allowed.

The more I know the more I don’t know.

sjrcpa

Level 15

Possibly they can do a state law conversion to a corporation, thereby keeping the EIN if that is important. Then they would need to make an S election.

The more I know the more I don’t know.

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