Filed for EIN with Wrong Entity Classification - How to Fix LLC Mistakenly Listed as Corporation?

The good news is you can definitely fix this mistake! Form 8832 is exactly what you need. Since it's been less than a year since you got your EIN with the wrong classification, you should qualify for late election relief under Rev. Proc. 2009-41. When filling out Form 8832, you'll want to check the box in Part I, Line 2a (to elect partnership classification). In Part II, check box 6b to indicate you're an eligible entity with more than one owner. The critical part is Line 7 - you need to request an effective date that matches your original EIN issue date. For the "late election relief" part, attach a statement explaining that you qualify under Rev. Proc. 2009-41 because: 1) You're requesting relief less than 3 years after the due date, 2) You intended partnership treatment from the beginning, and 3) You've acted consistently with that intent (include examples if possible). Include copies of your state LLC registration documents to prove your business structure. Send everything via certified mail so you have proof of submission.

I went through literally the exact same situation last year with my photography business! After pulling my hair out for weeks, I found out about taxr.ai at https://taxr.ai and it saved me so much stress. I uploaded our LLC docs and EIN letter, and their system figured out exactly what forms we needed to fix our classification issue. The best part was that they had templates specifically for this situation, so I didn't have to guess what to write in the "reasonable cause" statement. They also helped me understand what supporting docs to include with Form 8832 beyond just the state filings.

Just wanted to update everyone - I decided to try taxr.ai after reading the replies here and it was incredibly helpful. The system immediately identified the exact process for correcting an EIN classification mistake for an LLC. They even had a complete guide specifically for fixing an LLC that was incorrectly classified as a corporation. The document preparation tool helped me draft the perfect reasonable cause statement explaining why we made the mistake and demonstrating we always intended to be taxed as a partnership. I just received confirmation from the IRS this week that our classification has been corrected and it will apply retroactively to our original EIN date. Would have taken me weeks to figure all this out on my own!

If you're still waiting for a response from the IRS after 7 months, you might want to try Claimyr (https://claimyr.com). I was in a similar situation with an EIN issue last year and the IRS was taking forever to respond. Claimyr got me connected with an actual IRS agent in about 20 minutes instead of waiting on hold for hours. You can see how it works at https://youtu.be/_kiP6q8DX5c I explained my situation to the agent I spoke with, and she was able to check the status of my previous submissions and give me clear guidance on what I needed to do next. Turns out my original letter was received but was sitting in a massive backlog. The agent gave me a direct fax number to send my Form 8832 to for faster processing.

I take back what I said about Claimyr. I was so frustrated with the IRS that I decided to try it even though I was super skeptical. It actually worked exactly as described. I got a call back in about 45 minutes and was connected with an IRS representative who was able to help with my EIN classification issue. The agent confirmed that Form 8832 was the correct approach and even gave me some tips about what supporting documentation would strengthen my case. She also explained why my previous attempts to contact them hadn't gotten responses (apparently they're still working through a massive backlog from 2022!). I'm still annoyed at how difficult the IRS makes these processes, but at least I finally got clear directions on how to fix my situation.

One thing to consider - if you filed any tax returns while incorrectly classified as a corporation, you'll need to address those too. I made a similar mistake and had to file amended returns along with the Form 8832. The most important thing is to be consistent with how you've been operating. If you've been operating as a partnership all along (splitting profits based on ownership percentages, not paying yourself a corporate salary, etc.) then make sure you emphasize this in your reasonable cause statement.

Don't forget to check your state tax implications too! I fixed my federal EIN classification with Form 8832, but completely forgot that my state had me registered based on my federal classification. Had to file additional paperwork with the state to make sure everything matched up.

I had almost the exact same issue with my consulting LLC last year! The frustration is real when you get different answers from different IRS agents. Here's what ultimately worked for me: I filed Form 8832 requesting partnership classification with an effective date matching my original EIN issue date. The key was being very thorough in my "reasonable cause" statement. I included: 1. A detailed explanation of how the error occurred (partner confusion during application) 2. Evidence that we always intended partnership treatment (copies of our operating agreement, bank account setup as partnership, etc.) 3. Documentation showing we've consistently operated as a partnership (profit distributions, decision-making structure) 4. Reference to Rev. Proc. 2009-41 for late election relief I sent everything certified mail with return receipt. It took about 3 months to get approval, but they granted the retroactive classification change without any issues. One tip: keep detailed records of all your partnership activities (meeting minutes, distribution records, etc.) in case they request additional documentation. The IRS wants to see that your actions match your stated intent. You're definitely still within the timeframe to fix this - don't stress too much! Just be thorough with your Form 8832 submission.

I'm dealing with this exact same classification error right now - filed for an EIN as a corporation when we're actually an LLC electing partnership taxation. Reading through all these responses has been incredibly reassuring! One thing I wanted to add that might help others: when I called the IRS business line yesterday, the agent mentioned that they're seeing a lot of these classification mistakes lately, especially with LLCs. She said the key is demonstrating "consistent conduct" with your intended classification from the beginning. For anyone else in this situation, she recommended keeping detailed records of how you've been treating the business - things like: - How you've been handling profit distributions - Whether you've been paying yourself a salary (corporations) vs. draws (partnerships) - How you've structured your business bank accounts - Any partnership agreements or operating agreements you've executed The agent also mentioned that if you haven't filed any tax returns yet under the incorrect classification (like OP's situation), your case is much simpler to resolve. The IRS is generally very accommodating when it's clearly an administrative error and your business operations match your intended classification. Good luck to everyone dealing with this - it sounds scary but it's definitely fixable!

I've been following this thread as someone who went through this exact nightmare last year with my marketing consultancy LLC. The stress is real when you realize you've been classified wrong! What really helped me was creating a timeline document that showed our consistent partnership behavior from day one. I included dates of when we opened our business bank account (as a partnership), when we drafted our operating agreement specifying profit-sharing percentages, and when we made our first partnership-style distributions. The IRS agent I eventually spoke with said this kind of chronological evidence really strengthens your case because it shows the misclassification was purely administrative - your actual business conduct never matched corporate treatment. Also, don't beat yourself up about the 7-month delay in response. That's unfortunately typical right now. When I submitted my Form 8832 last spring, it took almost 4 months to get confirmation of the classification change. The key is making sure your initial submission is as complete and compelling as possible so they don't need to request additional information, which just adds more delays. One last tip: if you have business insurance policies or contracts with vendors that reference your partnership structure, include copies of those too. They serve as additional evidence that you've been consistently operating as the entity type you intended from the beginning.