Form 8832 & Entity Classification

Frequently Asked Questions

1) What is Form 8832?
Form 8832, Entity Classification Election, is an IRS form used by certain eligible business entities to choose how they want to be classified for U.S. federal tax purposes.

2) Why would a business file Form 8832?
An eligible entity may use Form 8832 to elect a different federal tax classification from its default classification.

For example, an eligible LLC may elect to be taxed as:
● Disregarded entity – generally for a single-member LLC
● Partnership – generally for a multi-member LLC
● C Corporation – by making an election to be treated as a corporation

3) When should Form 8832 be filed?
The election generally specifies an effective date. Form 8832 normally must be filed within the applicable IRS timeframe, which can generally be up to 75 days before the effective date or 12 months after the effective date, subject to IRS rules and late-election relief provisions.

4**) Who needs to file Form 8832?**
Form 8832, Entity Classification Election, is not required for every LLC. It is generally filed by an eligible business entity when the business wants to choose or change its federal tax classification from the default classification.

5) Does changing tax classification change the LLC's legal structure?
Not necessarily. A tax classification election generally changes how the IRS treats the entity for federal tax purposes. It does not by itself change the LLC's state-law legal structure.

6) Will changing the tax classification affect tax filing requirements?
Yes. The entity's tax classification can affect which federal tax return it must file.
For example:
● Disregarded Entity: Reported on the owner’s tax return.
● Partnership: Generally files Form 1065.
● C Corporation: Generally files Form 1120.
● S Corporation: Generally files Form 1120-S.

7) Does filing Form 8832 automatically change the EIN?
No. Form 8832 itself does not automatically issue a new EIN. Whether a new EIN is required depends on the entity's circumstances and the type of change being made.

Important

Before filing Form 8832, the business should determine:

1. Its current legal structure
2. Its current federal tax classification
3. The desired tax classification
4. The effective date of the election
5. Whether a new EIN is required
6. Which tax return will be required after the election

Form 8832 is a federal tax classification election, not an LLC formation or state amendment. The correct filing depends on the entity's specific circumstances.

8. Proof Of Filing

USPS or approved private delivery confirmation showing the form was mailed on time.
A copy of Form 8832 bearing an IRS acceptance stamp.
A copy showing the IRS date stamp or received date.
An IRS notice or letter confirming that the entity classification election was accepted.

Updated on: 21/08/2026