Form 8832, Entity Classification Election, lets eligible businesses choose how they want to be taxed by the IRS. It’s mostly used by LLCs to pick a tax status that works best for them.

When a business is formed, the IRS automatically assigns it a tax classification based on its structure. But with Form 8832, businesses can change that classification if another option makes more sense financially.

Why file Form 8832?

Businesses file Form 8832 for a few reasons:

  • To be taxed as a corporation. Some LLCs opt for corporate taxation to take advantage of corporate tax rates and benefits.
  • To be taxed as a partnership. Others stick with pass-through taxation to avoid double taxation.
  • To change tax classification. Businesses can switch from a corporation to an LLC (or the other way around) if their needs change.

Filing this form isn’t something to take lightly. It can have major financial and legal consequences, so it’s smart to check with a tax professional before making the switch.

When to file Form 8832?

The timing depends on your situation:

  • For new businesses: File within 75 days before your chosen effective date. The date can’t be more than 12 months before or two months and 15 days after you file.
  • For existing businesses: If you’re making a late election or changing your tax classification, file by the due date of your tax return for the year you want the change to take effect (including any extensions).

Filing on time is key. Missing deadlines could mean sticking with an unwanted tax classification for another year.

Where to mail Form 8832?

Send Form 8832 to the right IRS office based on your business location:

StatesMailing Address
CT, DE, IL, IN, KY, ME, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, VT, VA, WV, WIIRS, Kansas City, MO 64999
All other U.S. statesIRS, Ogden, UT 84201
Foreign entitiesIRS, Ogden, UT 84201

How to fill out Form 8832

It’s a straightforward form, but accuracy is important. Here’s how to do it:

  1. Fill in your business details. Include your name, address, EIN, and formation date.
  2. Pick your classification. Check the box for corporation, partnership, or disregarded entity.
  3. Set an effective date. It must be within the allowed timeframe.
  4. Sign the form. A business owner, manager, or officer must sign it.
  5. Include extra details if needed. If you have a taxpayer representative, list their info.
  6. Mail it. Send it to the right IRS office based on your location.
  7. Keep a copy. Always hold onto a copy for your records.

That’s it! Double-check everything before sending, and you should be good to go.

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