We elected corporate treatment last year and already regret it. Can we just switch back now?
My cofounder is from Egypt and I am from Jordan. We changed the LLC to corporate treatment last year because a prior adviser said it would make everything simpler, but now the compliance path feels heavier than expected for our actual business. Revenue is around $130,000 and we are nowhere near a financing event.
The issue is timing. We do not know whether the IRS sees this like any other form change or whether there is some waiting period that prevents a quick reversal. If there is a lockout rule, I would rather understand it now than burn time on an election the IRS would not honor.
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