MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

What is an S-Corporation?

17 Feb 2026 · 1 min

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1:04

In this concise educational segment, Mark Kohler clarifies that an S Corporation is not a separate legal entity created at the state level but an IRS tax election that can be applied to an existing LLC. He explains the procedural steps: filing Form 8832 (entity classification) together with Form 2553 (S election) to change the tax character of the LLC while retaining its state‑level status, EIN, and external perception as an LLC. Once the election is effective, the entity must file an 1120‑S tax return. Kohler also dispels the common misconception that only corporations (Inc., PC, PLLC) can be S corporations, emphasizing that any LLC can elect S status using the proper forms.

Chapters

Now, what is an S Corporation? The S Corporation is an election. I can take an LLC and file form 8832, the entity selection form, and the accompanying 2553, and select the date. I want my LLC to become an S Corp. Now, the LLC remains the same with the state. It might be best. Produce, comma, LLC is going to keep the same Ein. And the world still sees it as an LLC from the outside, but on the inside we've made this S election. So now based on the date we select, we're going to be an S Corporation moving forward and then have to file an 1120s tax return. Now, some people may think you have to be an Inc or a Professional Corp, PC or a PLLC or something like that in order to be an S corporation. That doesn't matter. You can be an LLC in an S Corporation by using Form 8832. You're going to use that form to say, I would like to be an S Corp and file that form in conjunction with the 2553. So the S Corporation is not an entity filed with the state. It's an election to change the character of that entity with the IRS and the state taxing authority. And that's it. That's what an S Corporation is.