Electing my Single Member LLC to be Taxed as an S Corp in 2025 - Form Requirements?

Does this mean I've been doing it wrong? I have a single-member LLC and my accountant had me file both 8832 and 2553 when we switched to S corp status last year. Did we do unnecessary paperwork?

You didn't necessarily do anything wrong. Filing both forms is a more cautious approach that some tax professionals prefer. By filing Form 8832 first, you're explicitly electing to be treated as a C corporation, and then Form 2553 converts you from C corp to S corp status. This two-step process leaves a clearer paper trail. The IRS has indicated that for single-member LLCs, filing just Form 2553 is sufficient because it effectively combines both steps. However, some professionals still recommend filing both forms to avoid any potential confusion on the IRS's part. If your accountant had you file both, they were likely being thorough, not wrong.

How does the system work? Like do they just review IRS docs or do they actually answer questions specific to your situation? I keep getting different answers from different people about LLC conversions.

I'm looking at the site but skeptical. What makes this better than just calling the IRS? Did you actually get S corp status without issues using just their advice?

The system does both - it analyzes official IRS publications and then applies that knowledge to your specific documents and questions. For my LLC, I uploaded my operating agreement and business info, then asked specifically about forms 8832 and 2553. It highlighted the relevant IRS rules and explained how they applied to my exact situation. I did get S corp status without any issues. The IRS accepted my Form 2553 filing without requesting Form 8832, exactly as taxr.ai predicted. The guidance was much more specific than the generic articles I found online that tried to cover every possible business situation.

Wait, how exactly does this work? They somehow get you to the front of the IRS phone queue? That sounds impossible with how backed up the IRS lines always are.

This sounds like a scam. No way someone can magically get through the IRS phone system when millions of people are waiting. I've been trying for weeks to get someone on the phone about my tax issues.

It's not about getting to the "front of the queue" - the service uses an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent answers, you get a call connecting you. So you're still in the same queue as everyone else, but you don't have to sit there listening to the hold music for hours. It's definitely not a scam. The service doesn't claim to have special access to the IRS - they're just handling the waiting part for you. I was skeptical too, but after multiple failed attempts to reach someone myself, I was willing to try anything. It worked exactly as advertised and saved me from having to keep redialing and waiting on hold all day.

Do you know what specific provisions in your operating agreement caused problems? I'm about to make the S corp election and now I'm worried my agreement might have issues.

The main issue was that my operating agreement allowed for potential different classes of membership interests in the future, which violates the S corp requirement of having only one class of stock. I also had some provisions about allowing non-US citizens as potential future members, which also isn't allowed for S corps. If you're considering the election, review your operating agreement carefully for anything related to different classes of ownership/membership interests, distributions that aren't proportional to ownership, special allocation provisions, or allowing ineligible shareholders (non-US citizens, certain types of trusts, etc). It's worth having a business attorney review it before you submit Form 2553.

The Taxpayer Advocate won't help with this kind of question unfortunately. They mostly step in when you have an actual problem with the IRS, not for planning advice. Your best bet is to try your local SCORE office or Low Income Taxpayer Clinic if you need free help.

Thanks for the practical tips about the EIN and certified mail! I'm curious - when you filed Form 2553, did you need to include any supporting documentation with it, or was the form by itself sufficient? Also, how long did it take to get confirmation from the IRS that your S corp election was accepted?