Q1: Are we required to file From 8832 converting from an S Corp to an LLC?
We converted the S Corp on 9/9/16 to an LLC with the Calif secretary of State. The 100% shareholder and 100% member are the same person. Our objective is to pass-thru income/losses to the LLC member just as we’ve done with the S Corp. Q2: Since the LLC is 100% owned by the same person is the entity now considered a dis-regarded entity?
Hi Frank, yes you are required to file Form 8832 if you want to go back to being taxed as a Single-member LLC. Refer to our Form 8832 article for assistance with completing this form:https://fitsmallbusiness.com/form-8832-instructions/.
The answer to your 2nd question is also yes. If the LLC only has one member then it is considered a single-member LLC. The IRS treats this type of LLC as a sole proprietor or disregarded entity as you mentioned. You can check out our Small Business Guide to LLC taxes for more info:https://fitsmallbusiness.com/llc-taxes-tax-returns/.
Thank you for reading!