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Life Cycle of an S Corporation

s corp life cycleBy Jason Watson, CPA
Posted Sunday, December 29, 2024

Here is a summary of the life cycle of an S Corporation in terms of startup and shutdown-

  • LLC Formed
  • S Corp Election Made, Form 2553
  • Payroll Accounts Opened
  • S Corp Revoked, Letter to IRS
  • Reverts to C Corp for Taxation
  • Revert to LLC for Taxation, Form 8832 (Entity Classification Election)
  • Distributions and Tax Consequences Dealt With
  • Payroll Accounts Closed
  • Final S Corp Tax Return Filed, Form 1120S

Jason Watson, CPA, is a Partner and the CEO of WCG CPAs & Advisors, a boutique yet progressive tax, accounting and business consultation firm located in Colorado serving small business owners and taxpayers worldwide.

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