USA Defaulted to C corp remedies

[Tax Matters]

Llc partnership with multiple partners purchased stock of an Scorp. This defaulted into C-corp. What are our options to continue to be taxes as an s-corp. Can the llc sell or assign the shares to the individual partners. And choose to be taxes as s corp from original transaction under relief of not having knowledge of defaulting into a c corp

 

[UncleSam]

This article may be applicable to your situation.

Limited Partnership and LLC Can Be Shareholders of S Corp

A corporation electing under IRC section 1362 to be taxed as an S corporation is subject to various ownership restrictions, including the requirement that shareholders must be individuals (section 1361(b)(1)(B)). Although very limited exceptions to this rule exist for entities such as estates...

www.journalofaccountancy.com

)).

However, more than anything else I would suggest hiring a CPA and explaining to them the situation of your company and see what they recommend.