Form 8832 Entity Classification Election: Step-by-Step Instructions (Part 2)

Part I: Election Information

The first part of Form 8832 asks for your entity's basic information and the classification you want to elect. You need to specify whether you are a newly formed entity or an existing entity changing its classification.

For newly formed entities, you can choose your classification effective from the formation date. For existing entities, you specify the date you want the new classification to take effect.

Choosing Your Classification

The form provides several classification options. For a single-member LLC with a foreign owner, the relevant choices are typically: disregarded entity (the default, no filing needed) or association taxable as a corporation. If you want to be taxed as a corporation, you would check the appropriate box and specify the effective date.

Remember that S-Corporation status is not available to foreign owners, so this election would make you a C-Corporation.

Filing and Signature Requirements

Form 8832 must be signed by an authorized representative of the entity — typically the owner for a single-member LLC. The form should be filed with the IRS no later than 75 days before or 12 months after the desired effective date of the election.