Conversion of California SMLLC to an S corp. effective 1/1/2022 - Spidell

Conversion of California SMLLC to an S corp. effective 1/1/2022

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Message Board Conversion of California SMLLC to an S corp. effective 1/1/2022

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    • #331222
      Henry Harvey
      Participant

      For the CA tax community:

      We will be filing an IRS 2553 to elect S status for a CA SMLLC. What specifically has to be done on the California side?

      Thanks,

      Henry W. Harvey, CPA

       

       

       

    • #331363
      Mike Giangrande
      Participant

      Henry,

      California conforms to the federal entity classification election. You don’t have to file anything separately with the state of California for the S election to be allowed in California. You should file a 2022 Q1 Form 100-ES and pay at least the $800 minimum tax by April 15, 2022 (more if your income is high enough).

      The exception that allows new corporations to not pay the $800 minimum tax does not apply where you were already in business and simply made an election to be taxed as a corporation.

      Do not pay the $800 tax as an LLC tax in 2022.

      After you file your first 100S with the state of California, the FTB will issue you a corporation number to use on future filings.

       

       

       

      • #331514
        Henry Harvey
        Participant

        Thank you very much!!

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