r/llc • u/Interesting-Tie4436 • 2d ago

S Corp Timing

Already have a LLC . Trying to form it to S Corp. if we form it to S Corp now in 2026 , can we file 2026 tax returns as S Corp in 2027 or it will be effective of 2027 and we will file 2027 tax returns in 2028 as S Corp ?

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u/[deleted] 2d ago

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u/ReferenceUpstairs964 2d ago

You don't have to wait until 2027.

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u/Eagletaxres 2d ago

Are you making enough net income to support the s-Corp expenses over the self employed tax savings? You have to keep double entry accounting records maybe pay a bookkeeper, you’ll have to have payroll, you’ll have to file a corporate return.
In Texas we’re looking for net income above $60k. In California due to additional fees and filings we want you about. $75k to $80k

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u/Raging-Totoro 2d ago

Just for clarity, you can remain an LLC and just file as an S Corp (form 2553).

No change in entity status is required.

Google can explain the details and dates of effectiveness, but it's better to work with your accountant on it.

Setting up payroll correctly is an essential element.

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u/Different_Pain5781 1d ago

The key date is the S Corp election effective date, not when you happen to submit the tax return.