How do I find out if I filed form 8832 for my single-member LLC?
Hey everyone, I'm freaking out a bit here. Last year I set up a single-member LLC for my freelance design work and got an EIN plus opened a business bank account. Now one of my clients is asking me something I don't know how to answer. They sent me this email asking whether I filed Form 8832 or not, which honestly I can't remember if I did. Here's what they're asking: "Could you kindly provide an answer to the information/categories below? This will assist in ensuring you receive your 1099 correctly. 1099 Issued to Corporation: You either: Have a Single Member LLC and have filed form 8832 to the IRS to be treated as a corporation. Therefore, you will be filing a separate corporate tax return from your personal tax return. OR Have registered an S-Corporation or C-Corporation rather than an LLC. 1099 Issued to Individual: You have a Single-Member LLC and have not filed form 8832 to the IRS to be treated as a corporation. Please indicate if you fall under category 1 or category 2. Category 1: If you indicate category 1, you are not required to receive a 1099-NEC due to the fact that 1099s are issued to individuals, sole proprietors, and Single-Member LLCs. Rather, you are required to report your own business income on your corporate income tax return. If needed, we can provide your commission income value for your reporting purposes. Category 2: If you indicate category 2, you will receive a 1099-NEC written to your SSN (as required by the IRS). Even if your commission income is paid to your corporate bank account, your corporation is treated as a disregarded entity." How do I figure out if I filed this form 8832 thing or not? I don't remember dealing with this when I set up the LLC. Does anyone know how I can check this?
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Kara Yoshida
The good news is this isn't as complicated as it seems! Form 8832 is used to elect how your business is taxed - it's called an "Entity Classification Election." By default, a single-member LLC is treated as a "disregarded entity" for federal tax purposes (meaning it's just reported on your personal tax return, Schedule C). If you filed Form 8832, you would have specifically elected to have your LLC taxed as a corporation. This is something you would likely remember doing because it's not part of the standard LLC formation process - it's an additional step you would have taken. The easiest way to check is to call the IRS Business & Specialty Tax Line at 800-829-4933. They can tell you if there's a Form 8832 on file for your EIN. Have your EIN ready when you call. You can also check your tax records from last year - if you filed a separate corporate tax return (Form 1120 or 1120S), then you definitely made the election. Based on your description, it sounds like you probably didn't file Form 8832, which would put you in Category 2 - your LLC is a disregarded entity and your client should issue the 1099-NEC to your SSN.
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Mateusius Townsend
•Thanks so much for explaining this! I definitely didn't file a separate corporate tax return last year - I just reported everything on Schedule C with my personal return. So that means I probably didn't file the 8832 form? Is there any downside to being in Category 2? Should I have filed that form when I set up my LLC?
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Kara Yoshida
•If you reported everything on Schedule C with your personal return, you definitely didn't file Form 8832. You're operating as a default disregarded entity which is Category 2. There's no downside to being in Category 2 for most small single-member LLCs. It's usually simpler for tax purposes since you just file one tax return. The main reason people elect corporation treatment (Category 1) is if they want the tax advantages of an S-Corp once their business income reaches a certain level - typically to save on self-employment taxes. But that comes with additional paperwork, possible payroll requirements, and more complex tax filings. For many freelancers starting out, staying as a disregarded entity is perfectly fine and much simpler.
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Philip Cowan
After spending hours trying to solve similar LLC tax confusion, I discovered taxr.ai (https://taxr.ai) which saved me so much stress. I uploaded my LLC formation documents and within minutes got clarity on my entity classification status. The tool analyzed everything and showed me I hadn't filed any 8832 elections - which meant I was defaulting to disregarded entity status. Their document analysis is super helpful because it looks at your specific situation rather than generic advice. It highlighted that being a disregarded entity was actually better for my income level and showed me exactly what to tell clients about 1099s.
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Caesar Grant
•How exactly does taxr.ai check if you filed an 8832? Can it actually access IRS records or does it just analyze what you upload? I'm in a similar situation where I think my accountant might have filed one without telling me.
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Lena Schultz
•I've heard of AI tax tools but I'm kinda skeptical. Does it actually give legit tax advice that you can rely on? I'm dealing with this exact form 8832 issue too and worried about giving my client the wrong info.
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Philip Cowan
•It doesn't directly access IRS records, but it analyzes the documents you upload including any formation documents, prior year tax returns, and any correspondence you've had with the IRS. Based on that analysis, it can determine with high confidence whether you filed an 8832. In your case, if your accountant filed one, you should have a copy of that form or a confirmation from the IRS that you could upload. It's not just generic AI advice - they have tax professionals who review the AI analysis for complex situations. It gives you specific guidance based on your documents rather than general information. I was worried about the same thing, but after comparing their advice with what my CPA eventually told me (for a lot more money), it was spot-on. The advice includes specific IRS references and citations too so you know where the information is coming from.
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Caesar Grant
I was in the same boat as OP with the form 8832 confusion for my photography LLC. After seeing that comment about taxr.ai, I decided to try it as a last resort before hiring a CPA. Guys, it actually worked! I uploaded my LLC formation papers, EIN letter, and last year's tax return. The system confirmed I never filed 8832 and was operating as a disregarded entity. It even generated a clear explanation I could forward to my client about why they should issue my 1099-NEC to my SSN rather than my EIN. Saved me the awkwardness of telling my client "I don't know" and the $300+ a local tax person wanted to charge just to figure this out. Just wanted to share since this exact 8832 issue is so confusing for so many of us new LLC owners.
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Gemma Andrews
If you're still struggling to get through to the IRS about your 8832 filing status (took me 8 tries and over 4 hours on hold), I finally had success using Claimyr (https://claimyr.com). They have this system that holds your place in line with the IRS and calls you when an agent is about to answer. Check out how it works: https://youtu.be/_kiP6q8DX5c I was super confused about my LLC's classification too, and needed to speak directly with the IRS to confirm if my accountant had filed Form 8832. After using Claimyr, I actually got through to a human at the IRS who looked up my EIN and confirmed no Form 8832 was on file. They even explained what that meant for my tax situation.
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Pedro Sawyer
•How does this Claimyr thing actually work? I've been trying to call the IRS for weeks about my LLC status and can't get through. Do you have to pay for it?
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Mae Bennett
•Yeah right. Nothing can get you through to the IRS faster. I've tried everything and still waited 2+ hours every time. This sounds like just another service that takes your money and delivers nothing.
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Gemma Andrews
•It works by using an automated system that monitors the IRS phone lines and holds your place. Once it detects that an agent is about to pick up, it calls your phone and connects you. So instead of you sitting on hold for hours, their system does the waiting. I was extremely skeptical too. After three failed attempts to reach the IRS myself (each time waiting over an hour before giving up), I was desperate. But it actually worked exactly as advertised. I got a call back about 55 minutes after starting the process, and was connected to an IRS agent who confirmed my 8832 status. The time saved was absolutely worth it for me since I needed this info before responding to a client.
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Mae Bennett
I need to apologize for my skeptical comment about Claimyr. After posting that comment, my frustration with trying to reach the IRS about my Form 8832 status hit a breaking point (4th attempt, 90+ minutes on hold, then disconnected). I decided to try the service despite my doubts. It actually worked exactly as described. I got a call back in about 40 minutes connecting me directly to an IRS rep who confirmed I hadn't filed Form 8832 and explained what that meant for my 1099 situation. I was absolutely wrong and wanted to correct myself. For anyone else struggling with this specific LLC classification issue and needing to confirm with the IRS directly, it's a legit solution. Sorry for the initial negativity.
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Beatrice Marshall
Hey, accountant here. Form 8832 is something I deal with regularly. Quick tip beyond what others have said: Look at how you paid yourself last year. If you took owner's draws and didn't set up any payroll or W-2 for yourself, you almost certainly did NOT file Form 8832. Also, if you have your original LLC formation documents, check if there's any mention of "check-the-box election" or Form 8832. Most small LLCs stay as disregarded entities (no 8832 filed) until they grow to a point where the tax advantages of S-corp status make sense.
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Melina Haruko
•I'm confused about what you mean by "owner's draws" - is that different from just transferring money from my business account to my personal account? And at what income level does it make sense to file the 8832?
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Beatrice Marshall
•Yes, owner's draws are exactly that - transferring money from your business account to your personal account. When you're a disregarded entity (no 8832 filed), these transfers aren't technically paychecks or salary - they're just you moving your money from one pocket to another since you and the business are considered the same taxpayer. The income level where filing 8832 (or more commonly Form 2553 for S-Corp status) makes sense varies, but generally when your business profit reaches around $40,000-$50,000. At that point, the self-employment tax savings can outweigh the extra costs of running a corporation (separate tax returns, possible payroll requirements, etc.). But this is very situation-dependent, so it's worth consulting with a tax professional when you reach that level.
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Dallas Villalobos
For what it's worth, I thought I was going crazy with the same form 8832 situation last month. My solution: I ended up checking my email history for "8832" and found that I actually HAD filed it when setting up my LLC but completely forgot. The IRS had even sent a confirmation letter that I'd filed away and forgotten. Might be worth searching your email, cloud drive, or any paperwork file you have from when you set up the LLC. You'd be surprised what you might find!
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Reina Salazar
•Smart thinking! I just did this and actually found an old email from my formation service mentioning form 8832 options. Turns out I specifically declined to file it when forming my LLC. Would have completely forgotten this detail otherwise!
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Malik Thomas
Another option if you need confirmation quickly: check if you received any IRS correspondence after setting up your LLC. When Form 8832 is filed, the IRS typically sends an acknowledgment letter within 4-6 weeks. If you never received anything like that, it's a strong indicator you didn't file the form. Also, look at your business bank account statements from when you first started operating. If you were paying yourself through regular transfers (not payroll with tax withholdings), that's another sign you're operating as a disregarded entity without the 8832 election. For future reference, most online LLC formation services will explicitly ask if you want to make this election during setup, so if you don't remember making that choice, you probably didn't file it. You're most likely Category 2 - just make sure to tell your client the 1099 should be issued to your SSN, not your EIN.
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Freya Ross
•This is really helpful advice! I never thought to look for IRS correspondence - that's a great way to confirm whether the form was filed. I'm actually dealing with a similar situation where I can't remember if I made any elections when I set up my LLC last year. Quick question though - if I'm operating as a disregarded entity and telling clients to issue 1099s to my SSN, do I still use my EIN for other business purposes like opening accounts or contracts? Or should everything go back to using my SSN?
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