What is Form 8832?
Form 8832, Entity Classification Election, is used by eligible entities to choose how they will be classified for federal tax purposes. This form allows businesses to elect their tax classification as a corporation, partnership, or disregarded entity.
Who Can File Form 8832?
Eligible entities include:
- Limited liability companies (LLCs)
- Partnerships
- Certain foreign entities
Corporations are not eligible entities and cannot change their classification using Form 8832.
Why File Form 8832?
By default, certain entities are automatically classified for tax purposes:
- Single-member LLCs: Disregarded entity (taxed as sole proprietorship)
- Multi-member LLCs: Partnership
- Corporations: Corporation
Form 8832 allows you to change from the default classification. For example:
- An LLC can elect to be taxed as a corporation
- A partnership can elect to be taxed as a corporation
When to File Form 8832
You can file Form 8832:
- When you form your entity
- To change your classification later (but you generally cannot change again for 60 months)
- To specify an effective date up to 75 days before or 12 months after you file
S Corporation vs. Form 8832
Note that Form 8832 is different from Form 2553 (S corporation election):
- Form 8832 elects C corporation status
- Form 2553 elects S corporation status
- An LLC wanting S corp status must first file Form 8832 to be treated as a corporation, then file Form 2553 (or file Form 2553 alone with certain entities)
What Information is Required?
Form 8832 requires:
- Entity name, address, and EIN
- Type of entity
- Election information (current and desired classification)
- Effective date of election
- Consent statements
Official Source: IRS Form 8832
