Form 8832: How to Elect Corporate Tax Treatment for a Multi-Member LLC

If you run a multi-member LLC, the IRS automatically taxes it as a partnership unless you tell it otherwise. **Form 8832** is the document that lets you change that default and elect corporate tax treatment instead. Here's how the form is structured, line by line, using the example of an LLC switching from partnership to corporate status.

Why this form exists

Absent an election, a domestic eligible entity with two or more members, such as a multi-member LLC, defaults to partnership tax treatment, though entities that existed before Jan. 1, 1997 may retain a different default classification. That default is often fine, and the IRS instructions are explicit that a new entity happy with its default classification should not file Form 8832 at all. But some multi-member LLCs want corporate tax treatment instead. The official IRS description of Form 8832 confirms it covers exactly three possible elections: corporation, partnership, or disregarded entity status. For this walkthrough, picture a hypothetical multi-member LLC that has never filed an election, is currently taxed as a partnership by default, and now wants to check the boxes that move it to corporate taxation.

Line 1: type of election

Line 1 asks you to check one of two boxes: box 1a for an initial classification by a newly formed entity, or box 1b for a change to a current classification. Our example LLC already exists and is currently taxed as a partnership by default, so it would check box 1b, not box 1a. Checking 1a routes the filer straight to line 3, skipping lines 2a and 2b, while checking 1b sends the filer to line 2a first. Getting this box right matters because it determines which parts of the form apply to you.

Line 3 and Line 6: choosing the new classification

Line 3 asks whether the entity has more than one owner. For an entity with more than one owner, answering yes opens the door to electing either partnership treatment or association-taxable-as-a-corporation treatment. Line 6 is where that choice becomes concrete: it offers box 6a, for a domestic eligible entity electing to be classified as an association taxable as a corporation, and box 6b, for one electing partnership classification. Our example LLC, wanting corporate treatment, would check box 6a. It's worth noting that Form 8832 is not the right form for every change in tax status: it should not be filed by organizations that are tax-exempt under section 501(a), by real estate investment trusts, or by entities seeking S corporation status, since S elections go through Form 2553 instead.

Line 8: setting the effective date

Line 8 is where you enter the date you want the new classification to take effect, and the IRS constrains that date on both ends. An election cannot take effect more than 75 days before the date the form is filed, and it cannot take effect more than 12 months after the filing date. If you write in a date further back than 75 days, the IRS simply resets it to 75 days before filing; if you write in a date further out than 12 months, it resets to 12 months after filing. There is a narrow path for relief if you miss these windows and needed an earlier effective date, available in limited circumstances under separate IRS procedures, though that relief does not change the general 75-day and 12-month boundaries on the form itself.

Worked example: setting the effective date

Suppose our example LLC, which wants to switch from its default partnership treatment to corporate tax treatment, files Form 8832. The earliest the corporate classification can take effect is 75 days before that filing date, and the latest is 12 months after it. If the LLC's accountant mistakenly enters an effective date 100 days before filing, the IRS will generally move the effective date to exactly 75 days before the filing date, though limited late-election relief may permit an earlier date in some circumstances.

• filing date: 0
• 75: 75
• Formula: filing date + 75
• Result: 75

How the 75-day earliest effective date works relative to a filing date

Before you mail it: the EIN requirement

The IRS will not process Form 8832 unless the entity already has an Employer Identification Number by the time of filing. If the entity doesn't have one yet, it must apply using Form SS-4 before filing Form 8832, and it must have actually received the EIN, not just applied for it, by the filing date.

Where to send the form, and what happens next

Form 8832 is mailed to one of two Internal Revenue Service Centers depending on the state where the entity's principal business, office, or agency is located, or to a separate address if the filer is based outside the United States, though a separate, updated IRS mailing-address notice supersedes the addresses printed in the Rev. Dec-2013 form and instructions, so filers should confirm the current mailing address before sending it in. After mailing, the relevant service center will notify the entity at the address listed on the form whether the election was accepted or not accepted, and the entity should generally hear back within 60 days of filing. If 60 days pass with no notice, the instructions suggest following up by phone or by certified letter to confirm the election was received and processed. The IRS's official 'About Form 8832' page lists a current revision of the form, which remains the authoritative version until the IRS replaces it.

Steps for a multi-member LLC switching to corporate taxation

1. Confirm the LLC currently has no classification election on file and is taxed under the default partnership rule, since that affects which boxes you check
2. Make sure the LLC already has an EIN, applying via Form SS-4 first if it does not, since the IRS will not accept the election without one
3. On line 1, check box 1b for a change in current classification, since the LLC already exists and already has a default classification
4. On line 3, confirm the LLC has more than one owner, which opens the option to elect corporate treatment
5. On line 6, check box 6a to elect classification as an association taxable as a corporation
6. On line 8, choose an effective date within 75 days before or 12 months after the date you plan to file, keeping in mind the IRS will adjust dates outside that window
7. Mail the completed form to the IRS service center that matches the state where the LLC's principal business is located
8. Watch for a determination notice at the address listed on the form, generally within 60 days of filing

Before and after the election

Status	Default partnership classification	After corporate election via Form 8832
Governing default rule	Multi-member LLC taxed as a partnership automatically	LLC taxed under normal corporate tax rules
Classification filed	Partnership, by default, absent a Form 8832 election	Association taxable as a corporation, once elected on Form 8832
Box checked on Form 8832	None needed; this is the no-election outcome	Box 6a, domestic entity electing association taxable as a corporation

Classification status before and after a Form 8832 corporate election for a multi-member LLC

Key takeaways

• A new multi-member LLC defaults to partnership taxation unless it files an election changing that, and a new entity satisfied with the default should not file Form 8832 at all
• An existing LLC changing its classification checks box 1b on line 1 and, to become taxed as a corporation, box 6a on line 6
• The effective date on line 8 generally cannot fall more than 75 days before filing or more than 12 months after filing, and dates outside that window are automatically adjusted to the nearest boundary, though limited late-election relief under Rev. Proc. 2009-41 may allow an earlier date in some circumstances
• You must already hold an EIN before filing, since the IRS will not accept the election without one
• Once the corporate election takes effect, the LLC files Form 1120 instead of Form 1065, unless it separately qualifies for and elects S corporation status, in which case it files Form 1120-S

Frequently asked questions

Does every multi-member LLC need to file Form 8832?

No, a new eligible entity that is satisfied with its default partnership treatment should not file Form 8832 at all, while an existing entity that wants to change its current classification must file and check box 1b on line 1.

What happens if I pick an effective date too far in the future or past?

The elected classification generally cannot take effect more than 75 days before the form is filed, nor more than 12 months after it is filed, and a date outside that window is automatically adjusted to the nearest boundary, though late election relief under Rev. Proc. 2009-41 may allow an earlier effective date in limited circumstances.

Can I file Form 8832 before my LLC has an EIN?

No. The entity must already have received an EIN by the time Form 8832 is filed, applying first on Form SS-4 if needed, and the IRS will not accept an election filed without one.

How will I know if the IRS accepted the election?

The relevant IRS service center notifies the entity at the address listed on the form of acceptance or non-acceptance, and a determination is generally received within 60 days of filing.

What tax return does the LLC file after electing corporate treatment?

Once the corporate classification is in effect, the LLC files Form 1120 and is taxed under normal corporate rules instead of filing the partnership return, Form 1065, unless the LLC separately qualifies for and elects S corporation status, in which case it files Form 1120-S instead.

Can an LLC use Form 8832 to elect S corporation status instead?

No. Form 8832 is not used for S corporation elections; those are made separately on Form 2553, and Form 8832 also should not be filed by organizations tax-exempt under section 501(a) or by real estate investment trusts.

Sources

• www.irs.gov
• www.irs.gov
• www.irs.gov