Form 8832: How Will Your Business Be Taxed? (Entity Classification Picker)
Updated · Reviewed by Deepak Middha, Chartered Accountant
The short answer
Form 8832 lets an eligible business entity — an LLC or partnership — choose to be taxed as a corporation, a partnership or a disregarded entity. Without it, a US entity with two or more owners is a partnership and one with a single owner is disregarded. To become an S corporation, you file Form 2553 instead, not Form 8832.
How will your business be taxed?
A US single-owner LLC is disregarded by default and files nothing to keep that.
- Corporation (C corporation) (Form 8832)
- S corporation, if it qualifies (Form 2553 — no Form 8832 needed)
Form to file: None to keep the default; Form 8832 to elect a different classification; Form 2553 for S corporation status.
What to do next: compare what each choice costs in tax with the LLC / S-corp calculator, and see the Form 2553 guide if S corporation status is the goal.
Key takeaways
- A US LLC with two or more owners is a partnership by default; with one owner it is disregarded.
- A business incorporated under state law is already a corporation and cannot use Form 8832.
- To keep the default classification, file nothing.
- For S corporation status, file Form 2553 only — it counts as the corporate election too.
- An election can take effect up to 75 days back or 12 months ahead, and a change locks you in for 60 months.
Default tax classification: the table
| Entity | Default without Form 8832 | Can elect |
|---|---|---|
| US LLC or partnership, 2+ owners | Partnership | Corporation (8832) or S corporation (2553) |
| US LLC, 1 owner | Disregarded entity | Corporation (8832) or S corporation (2553) |
| US corporation (incorporated under state law) | Corporation | No 8832 election; S corporation via 2553 if eligible |
| Foreign entity, 2+ owners, at least one without limited liability | Partnership | Corporation (8832) |
| Foreign entity, every owner with limited liability | Corporation (association) | Partnership if 2+ owners, or disregarded if 1 (8832) |
| Foreign entity, 1 owner without limited liability | Disregarded entity | Corporation (8832) |
A disregarded single-owner LLC run by an individual reports on Schedule C. To see what corporation or S corporation treatment would do to the tax bill, run the LLC / S-corp calculator.
Form 8832 vs Form 2553
| Form 8832 | Form 2553 | |
|---|---|---|
| Elects | C corporation, partnership or disregarded entity | S corporation |
| Who uses it | Eligible entities (LLCs, partnerships, eligible foreign entities) | Corporations, and eligible entities that want S status |
| Timing | Effective up to 75 days before filing, or up to 12 months after | Within 2 months and 15 days of the start of the tax year, or any time in the year before |
| File both? | No — not for an entity electing S status | Covers the corporate election as well |
The S corporation decision itself — whether the payroll-tax saving is worth it — is covered in the Form 2553 guide.
Late Form 8832 election relief
An entity that failed to get its intended classification solely because Form 8832 was filed late may qualify for relief under Rev. Proc. 2009-41 by filing Form 8832 within 3 years and 75 days of the requested effective date, if it meets the procedure's other conditions (including having filed returns consistent with the intended classification) and explains in Part II why the election was late. Otherwise relief requires a private letter ruling.
Frequently asked questions
What is Form 8832 used for?
Form 8832, Entity Classification Election, is how an eligible business entity — an LLC, a partnership, or a foreign entity that is not automatically a corporation — chooses to be taxed as a corporation, a partnership, or an entity disregarded from its owner. It is often called the check-the-box election. If you are happy with the default classification, you do not file it.
Does a single-member LLC need to file Form 8832?
No, not to keep its default. A US LLC with one owner is a disregarded entity unless it elects otherwise, so its income is reported on the owner's return — Schedule C for an individual running a business. It files Form 8832 only to be taxed as a corporation, or Form 2553 to go straight to S corporation status.
Do I file Form 8832 or Form 2553 for an S corporation?
Form 2553 only. The Form 8832 instructions say not to file Form 8832 for an entity electing S corporation status: an eligible entity that timely files Form 2553 and qualifies is treated as having elected to be an association taxable as a corporation. Form 8832 is for choosing C corporation, partnership or disregarded status.
When does a Form 8832 election take effect?
On the date you enter on line 8, or the filing date if you leave it blank. The date can be no more than 75 days before the form is filed and no more than 12 months after. A date outside that window is moved to the nearest allowed date — 75 days back or 12 months forward. A copy also goes with the entity's tax return for that year.
Can I change my entity classification again after filing Form 8832?
Generally not for 60 months after an election that changed the entity's classification took effect. The 60-month limit does not apply if the earlier election was a newly formed entity's first classification, effective on the date it was formed. The IRS can allow an earlier change by private letter ruling if more than half the ownership has changed hands.
What if I missed the Form 8832 deadline?
Rev. Proc. 2009-41 offers late election relief if the only reason the entity did not get its intended classification is that Form 8832 was filed late. File it within 3 years and 75 days of the requested effective date, meet the procedure's conditions on consistent returns, and explain the lateness in Part II. Otherwise relief needs a private letter ruling.