Mark Kohler shows how to convert an LLC to an S corporation for tax purposes using Form 2553, keeping your EIN and bank account intact. You can backdate the election to January 1 and file Form 1120-S instead of Schedule C, which often saves thousands in self-employment taxes.
Don't dissolve your llc, you're going to keep the same ein, the same bank account, the same company name. You're just going to elect to be taxed as an S Corp. Now using IRS Form 2553, you can backdate this election under RevProc 201330 allowing you to make it effective back as far as January 1st for the same years. If you file later in the year, this means you can decide mid year and still capture the tax savings for the whole year. Now once elected, your LLC will now file as an 1120s tax return instead of skip Schedule C is in charge. You'll start running this payroll report every quarter through a simple payroll procedure. For all intents and purposes, you are now an S Corp even though the LLC acronym is still at the end of your company name. Because it's not a new company, it's the same LLC with a new tax treatment. So don't over complicate this. You're not rebuilding the house, you're just upgrading the electrical system.
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