How to fill out Form 8832: A guide to entity classification elections

Choosing an entity’s federal tax classification can affect which return it files and how its income is reported. Form 8832, Entity Classification Election, is the IRS form eligible entities use when they want to elect a federal tax classification other than the default or change an existing classification. It is a tax election, not a state-law formation document.

What is Form 8832?

Form 8832 lets an eligible entity be classified for federal tax purposes as a corporation, a partnership, or an entity disregarded as separate from its owner. The form is often discussed in connection with LLCs, but whether it is necessary depends on the entity’s default classification, the requested tax treatment, and any other election being made.

Who needs to file Form 8832?

An eligible entity files Form 8832 when it does not want to accept its default federal tax classification or wants to change its classification. For example, a domestic single-member LLC is generally disregarded as separate from its owner for income-tax purposes unless it elects corporate treatment. A domestic LLC with two or more members is generally treated as a partnership unless it elects corporate treatment.

Do not file Form 8832 just because you formed an LLC. If the default classification fits your situation, no election is needed. Also, an LLC that timely files Form 2553 to elect S corporation status generally does not need to file Form 8832 in addition to Form 2553. The two forms have different purposes, so confirm the intended result before filing.

Before you complete Form 8832

• The entity’s legal name, EIN, current address, formation date, and owner information
• The current classification and the classification you want
• The intended effective date of the election
• Details of any prior Form 8832 election, particularly during the prior 60 months
• Confirmation that every required owner or authorized signer can consent and sign

The entity must have received its own EIN before filing Form 8832. Do not enter “Applied For,” and do not use a single owner’s taxpayer identification number in place of the entity’s EIN.

Entity classification affects federal income-tax reporting and may have state, payroll, ownership, or operational consequences. Discuss the election with a qualified tax adviser before making it.

How to fill out Form 8832, step by step

1. Enter the entity’s identifying information

At the top of the form, enter the eligible entity’s legal name, EIN, and complete mailing address. Use the entity’s information as it appears in official records. The entity must have received its own EIN before filing Form 8832. Do not enter “Applied For” on the form. Check the address-change box only if it applies. The other checkboxes at the top concern specific types of late-election relief and should be used only when the applicable requirements are met.

2. Choose the type of election on line 1

Line 1 asks whether the entity is choosing a federal tax classification for the first time or changing its current classification. Check box 1a when the entity is electing out of its default classification for the first time; check box 1b when it is changing an existing classification. An entity that checks box 1a skips lines 2a and 2b.

3. Answer the prior-election questions on lines 2a and 2b

These questions help determine whether the entity may make a new classification election. The IRS generally limits changes in classification after an election becomes effective, with rules that can involve a 60-month period and specific exceptions. Answer from the entity’s actual filing history; do not guess if a previous owner, adviser, or predecessor may have filed an election.

4. Complete ownership and affiliated-group information on lines 3 through 5

Line 3 asks whether the entity has more than one owner. If it has only one owner, enter that owner’s name and identifying number on line 4. Complete line 5 only if one or more entity owners belong to an affiliated group of corporations that files a consolidated return; in that case, enter the parent corporation’s name and EIN. Foreign entities provide their country-of-organization information on line 7.

5. Select the requested classification on line 6

Line 6 is where you elect the federal tax classification. Read every choice and its instructions closely. Your selection must match the entity’s eligibility and intended federal tax treatment. This is the decision point of the form, so avoid treating it as a simple administrative checkbox.

6. Enter the effective date on line 8

Enter the effective date requested for the election. Generally, an election cannot take effect more than 75 days before the filing date and cannot take effect more than 12 months after the filing date. The IRS describes possible late-election relief in certain circumstances, but relief is not automatic.

7. Complete consent and signature requirements

Form 8832 must be signed either by each current owner of the eligible entity or by an officer, manager, or member authorized under local law or the entity’s organizational documents to make the election. If the election is effective before it is filed, certain former owners may also need to sign. A separate consent statement may be attached when needed.

How to file Form 8832

Submit Form 8832 by mail to the applicable IRS service center listed in the current form instructions. Keep a signed copy, evidence of submission, member-consent records, and the IRS acceptance notice with the entity’s tax records. If the IRS accepts the election, file the federal return that matches the new classification and attach a copy of Form 8832 to the appropriate return for the year of election when required.

Common Form 8832 mistakes to avoid

An entity-classification election can affect the return the business files and how income is reported. Review these common mistakes before signing and submitting Form 8832:

• Filing an unnecessary election: Do not file Form 8832 when the entity’s default federal tax classification is already the desired result.
• Confusing Form 8832 with Form 2553: Form 8832 elects a federal tax classification, while Form 2553 elects S corporation status for an eligible entity.
• Using an unsupported effective date: Generally, an election cannot take effect more than 75 days before or more than 12 months after the filing date.
• Overlooking a prior election: Review the entity’s classification history and the 60-month limitation before requesting a change.
• Missing required consent or signatures: Confirm that all required owners or an authorized signer have properly approved the election.
• Entering inconsistent entity details: Make sure the entity name, EIN, ownership information, and classification choice match official records.
• Assuming late-election relief is automatic: Check the applicable requirements before relying on a late-relief box or requesting an earlier effective date.

Form 8832 Generator by Jotform

Form 8832 requires accurate entity details, ownership information, classification choices, and an effective date. Jotform’s Form 8832 Generator lets you organize this information online and download a completed PDF for review before submitting it to the IRS.

Organize entity-classification details

Use the labeled fields to gather the entity’s legal name, EIN, address, ownership information, current classification, requested classification, and intended effective date. Keeping these details together can make the election easier to review with a tax professional or authorized signer.

Review the election before signing

A classification election can affect the entity’s federal filing requirements and tax treatment. Review the effective date, prior-election history, required consent, and classification choice against the current IRS instructions before signing the form.

Keep business information secure

Form 8832 can include EINs, owner information, and business records. Jotform protects submissions with 256-bit SSL encryption and GDPR- and CCPA-friendly features. You can also use Encrypted Forms for additional protection.

Download a completed copy for filing

After completing the fields, download the PDF for review and signature. Jotform does not submit Form 8832 to the IRS; the entity remains responsible for obtaining required consent, using the correct submission method, and keeping proof of filing.

Your next steps for filing Form 8832

Before filing Form 8832, confirm that the entity is eligible to make the election, the requested classification matches its tax goals, and the effective date meets IRS rules. Because an entity-classification election can affect future returns and tax treatment, review the completed form and supporting records with a qualified tax adviser when the facts are complex.

Ready to organize your entity-classification election? Use Jotform’s Form 8832 Generator to complete the form online and download a PDF for review before submitting it to the IRS.

AS ALWAYS, CONSULT AN ATTORNEY AND/OR OTHER APPLICABLE PROFESSIONALS BEFORE RELYING ON ANY INFORMATION ON THIS PAGE. THE CONTENT ABOVE IS FOR INFORMATIONAL PURPOSES ONLY. JOTFORM IS NOT PROVIDING LEGAL, TAX, FINANCIAL OR OTHER ADVICE.