LLC wants to have a MERP for its owners as well as other employees

[Oh so SIMPLE]

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?

[Oh so SIMPLE]

Bueller? Bueller?

Bump up so that hopefully someone has some information to share on these questions.

[Ron Snyder]

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.

[Oh so SIMPLE]

Thank you, vebaguru. Are your answers the logical deductions of other rules, or per chance is there a citation for those specific conclusions?