California pass-thru entity new tax election: questions re LLCs

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Taxed and Spent

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Jul 29, 2021, 11:37:40 AMJul 29
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Taxpayer has a single member LLC. Currently, income is reported
directly on taxpayer's Federal 1040 and California 540 personal income
tax returns.

For taxpayer to achieve the benefits provided by the new California
pass-thru entity new tax election, I believe the following is required:

1. File IRS Form 8832 to elect to have the SMLLC taxed as a corporation.

2. File IRS Form 2553 to elect to have the SMLLC treated as a Subchapter
S corporation.

3. File California and Federal Subchapter S tax returns.

4. Revoke the elections under items 1 and 2 above when appropriate or
desirable, but no sooner than 5 years after making the elections.


Is this correct?

Question: Once filing Subchapter S tax returns in California, does the
LLC still have to file annual LLC tax returns and pay the LLC tax and
annual fee in addition to the Subchapter S taxes paid to California?

Thanks for any replies and any other thoughts.

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