Oh so SIMPLE Posted April 1, 2010 Report Share Posted April 1, 2010 Here are a couple of questions. a) can an LLC currently be taxed as a sole proprietorship make a tax election now to henceforth be taxed as a C corporation? b) if so, can the owners be added to payroll for the personal services they render and receive MERP benefits? Link to comment Share on other sites More sharing options...
Oh so SIMPLE Posted April 2, 2010 Author Report Share Posted April 2, 2010 Bueller? Bueller? Bump up so that hopefully someone has some information to share on these questions. Link to comment Share on other sites More sharing options...
vebaguru Posted April 5, 2010 Report Share Posted April 5, 2010 Here are a couple of answers: a) Yes, under the check the box rules. b) Yes, just like any C corporation. However, if they elect to be taxed as an S corporation, they will not be able to enjoy MERP benefits, as those will be passed through to the 2% owner. Link to comment Share on other sites More sharing options...
Oh so SIMPLE Posted April 5, 2010 Author Report Share Posted April 5, 2010 Thank you, vebaguru. Are your answers the logical deductions of other rules, or per chance is there a citation for those specific conclusions? Link to comment Share on other sites More sharing options...
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