Life Cycle of an S Corporation

By Jason Watson, CPA
Posted February 28, 2020

Here is a summary of the life cycle of an S Corporation in terms of startup and shutdown-

• LLC Formed

• S Corp Election Made, Form 2553

• Payroll Accounts Opened

• S Corp Revoked, Letter to IRS

• Reverts to C Corp for Taxation

• Revert to LLC for Taxation, Form 8832 (Entity Classification Election)

• Distributions and Tax Consequences Dealt With

• Payroll Accounts Closed

• Final S Corp Tax Return Filed, Form 1120S

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Jason Watson, CPA, is the Managing Partner of WCG, Inc., a progressive Colorado Springs tax and consultation firm.

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