Business Entity Types

Form 8832 Entity Classification Election Part 1: What It Is and Who Uses It

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Written byLipai WangFounder · IRS-registered tax professional

Key Takeaways

Form 8832 lets entities choose their tax classification
Only needed if you want a non-default classification
The election applies to the entity, not the owner
60-month lock-in period after election

Form 8832: What It Is

Form 8832 (Entity Classification Election) allows business entities to choose their federal tax classification. Single-member LLCs default to disregarded entities; multi-member LLCs default to partnerships. Both can elect corporate treatment.

Who Uses It

LLC owners who want corporate tax treatment file Form 8832. Foreign owners should carefully consider whether this change is beneficial, as it shifts filing from Form 5472/pro forma 1120 to a full corporate return.

Key Rules

Only file if you want a non-default classification. The election is for the entity, not the owner. Once elected, the 60-month rule prevents changing for 5 years.

Frequently Asked Questions

Is Form 8832 the same as electing S corp status?

No. Form 8832 elects C corporation treatment. S corp election requires Form 2553 and is unavailable to foreign nationals.

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