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Layla Mendes

Where do I find my LLC's tax classification? Need help for 2025 filing

Hey everyone, I'm prepping for my 2025 tax return and I'm totally confused about my LLC's tax classification. I started my small web design business last year and filed all the paperwork to form an LLC, but now I have no idea where to find what tax classification I chose (or if I even picked one?). Is this something that would be on my formation documents? Or do I need to contact the IRS directly? I remember filling out a bunch of forms but can't remember if I selected to be taxed as a sole proprietor, partnership, or corporation. Not even sure where to look to figure this out. Any help would be really appreciated!

The tax classification for your LLC should be fairly easy to track down! LLCs have what's called a "default classification" if you didn't specifically elect a different one. Single-member LLCs are automatically classified as "disregarded entities" (basically treated as sole proprietorships for tax purposes), while multi-member LLCs default to partnership taxation. If you did make a specific election to be taxed differently than the default (like choosing S-Corporation or C-Corporation treatment), you would have filed Form 8832 (Entity Classification Election) or Form 2553 (for S-Corporation status). Check your records for copies of either of these forms - if you submitted them, they would show your chosen classification. You can also contact the IRS Business & Specialty Tax Line at 800-829-4933 and ask them to research what classification is on file for your LLC's EIN. They can tell you exactly how your LLC is currently classified in their system.

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Aria Park

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Thanks for the info. If I did default to a sole proprietor status but now think an S-Corp might be better for my situation, is it too late to change for the 2025 tax year? And do I need to do anything special with my state filing if I change my federal classification?

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For changing to S-Corporation status for the 2025 tax year, you need to file Form 2553 within 2 months and 15 days from the beginning of the tax year you want the election to take effect. So for a calendar year filer, you'd need to file by March 15, 2025 for it to apply to all of 2025. As for state requirements, it varies by state. Most states follow the federal classification automatically, but some require a separate election or notification. Check with your state's department of revenue or tax agency to confirm their specific requirements when changing your tax classification.

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Noah Ali

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After struggling with the exact same issue last year, I found this amazing tool called taxr.ai (https://taxr.ai) that saved me tons of headaches. I uploaded my LLC formation documents and EIN letter, and it actually identified my tax classification for me and explained what it meant for my filing requirements. It also showed me where to look on my documents for this information which was super helpful. The system scans all your tax docs and gives you a really clear breakdown of your situation. It even flagged that I might benefit from making an S-corp election based on my income level, which my accountant later confirmed would save me several thousand in self-employment taxes.

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Does this work if you formed your LLC in another state? I created mine in Wyoming but I actually live in California (I know, I know). Wonder if it can handle that complexity.

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Sounds interesting but I'm worried about uploading my sensitive documents to some random website. How secure is it? And can it help if I've been running my business for a few years but never really understood my tax situation?

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Noah Ali

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Yes, it absolutely works for LLCs formed in any state. It actually has specific guidance for cases like yours where you have an out-of-state LLC. It'll help you understand both your Wyoming filing requirements and your California foreign entity registration and tax obligations. Regarding security, I had the same concern initially. They use bank-level encryption and don't store your documents after analysis. My accountant actually recommended it to me, which gave me confidence. And yes, it's designed exactly for people who've been running businesses but need clarity on their tax situation - it can analyze past years' documents too and help you understand if you've been filing correctly.

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Just wanted to follow up about taxr.ai that someone recommended above. I decided to give it a try despite my initial security concerns, and wow - super helpful! I uploaded my LLC documents and discovered I had defaulted to disregarded entity status (single-member LLC) because I never filed any classification election forms. The tool explained exactly what this means for my tax filing (basically Schedule C with my personal return) and highlighted some deductions I'd been missing. If anyone else is confused about their LLC tax classification, definitely worth checking out.

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Olivia Harris

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If you need to check your LLC's classification directly with the IRS, good luck getting through to them! I spent THREE DAYS trying to reach someone on their business line. Eventually found a service called Claimyr (https://claimyr.com) that got me connected to an IRS agent in about 20 minutes. They have this weird system that holds your place in line and calls you when an agent is about to be available - you can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to look up my tax classification immediately and even told me when I had filed my initial 8832 form (which I had completely forgotten about). Saved me from potentially filing incorrectly and triggering an audit.

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How exactly does this work? Seems like magic if they can get you through when the IRS line is constantly busy. Is this some kind of premium IRS service or what?

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Alicia Stern

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This sounds like BS honestly. The IRS phone system is completely broken - no way some random service can magically get through when millions of people can't. Probably just trying to sell something useless.

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Olivia Harris

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It's not a premium IRS service - they use technology to continuously call the IRS until they get through, then transfer the call to you. It's like having a robot assistant who keeps redialing for you instead of you having to do it yourself and wait on hold forever. I was skeptical too at first. But the way it works is pretty straightforward - their system basically keeps calling the IRS repeatedly using multiple lines until one gets through, then they hold that line and call you to connect. Nothing magical about it, just automated persistence that saves you from having to do it manually. I was connected within 23 minutes when I had previously spent hours trying to get through.

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Alicia Stern

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OK I have to eat my words about Claimyr. After posting my skeptical comment, I was still desperate to figure out my LLC's classification since my accountant needed it ASAP. Decided to try it as a last resort and... it actually worked! Got connected to an IRS agent in about 30 minutes (was quoted 25, so pretty close). The agent confirmed I had filed as a partnership since my LLC has two members, and had never filed to change the classification. Saved me from accidentally filing incorrectly and potentially triggering issues. Sorry for doubting, but after years of IRS frustration, it's hard to believe anything can actually work!

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For those wondering about LLC classifications, here's a quick breakdown: - Single-member LLC: Automatically treated as a "disregarded entity" (sole proprietorship) unless you elect otherwise - Multi-member LLC: Automatically treated as a partnership unless you elect otherwise - To be taxed as an S-Corporation: File Form 2553 - To be taxed as a C-Corporation: File Form 8832 If you don't remember filing either Form 8832 or 2553, you're probably under the default classification based on your membership structure.

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Drake

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Thanks for this summary! Quick question - if I do change to S-Corp status, what forms will I need to file for my 2025 taxes that are different from what I'm filing now as a sole proprietor?

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As an S-Corporation, instead of reporting business income on Schedule C of your personal return, you'll need to file Form 1120-S (the S-Corporation tax return). You'll also need to pay yourself a "reasonable salary" which requires setting up payroll, withholding employment taxes, and filing quarterly employment tax returns (Form 941). You'll receive a Schedule K-1 from your S-Corporation showing your share of income, which then gets reported on your personal tax return. The benefit is that only your salary is subject to self-employment taxes, while additional profit distributions aren't - which can save substantial money if your business is profitable.

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Sarah Jones

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Does anyone know if TurboTax Business can handle LLC returns regardless of the classification? My LLC is set up as an S-Corp and I'm trying to decide if I need to hire an accountant or can DIY.

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I used TurboTax Business last year for my S-Corp and it worked fine, but honestly it was pretty complicated. If your situation is simple it might be OK, but if you have multiple income streams, employees, or significant deductions, you might want a professional. The S-Corp payroll requirements alone can be tricky.

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Paolo Longo

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@Layla Mendes - I went through this exact same confusion when I first started my LLC! Here's what I learned: if you only have one member (just yourself), your LLC automatically defaults to "disregarded entity" status, which means you file taxes as a sole proprietor using Schedule C on your personal return. You don't need to file a separate business return. The easiest way to confirm is to look for any Form 8832 or Form 2553 in your records - these would show if you made a special election. If you can't find either of these forms, you're almost certainly under the default classification. Since you mentioned this is for a web design business you started last year, you'll likely be filing Schedule C with your 2025 personal tax return. Just make sure to track all your business expenses throughout the year - things like software subscriptions, equipment, home office expenses, etc. can really add up to significant deductions! If you want to double-check, the IRS business line at 800-829-4933 can tell you what's on file, though be prepared for potentially long wait times.

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Zoey Bianchi

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This is really helpful advice! I'm also a newcomer to the LLC world and had no idea about the default classifications. Just to clarify - if I have a single-member LLC and stick with the disregarded entity status, do I still need to get an EIN or can I just use my SSN on the Schedule C? And are there any downsides to staying with the default classification versus electing S-Corp status for a small web design business?

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