Don’t dissolve your LLC—you don’t need a new company to become an S corporation. You keep the same EIN, same bank account, same name. All you’re doing is upgrading the tax treatment.
Here’s how it works:
• File IRS Form 2553 to elect S corporation status.
• Under Rev. Proc. 2013-30, you can backdate the election as far back as January 1 of the same year, even if you file later.
• That means you can switch midyear and still capture the full-year tax savings.
• After the election, your LLC files an 1120-S instead of a Schedule C.
• You’ll start running quarterly payroll, which is how the S corp saves you thousands in self-employment tax.
• Legally, you’re still an LLC—just with an S corp tax election.
You’re not tearing down the house.
You’re simply upgrading the electrical system to save money and run more efficiently.
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