{"id":6734,"date":"2014-02-08T10:45:07","date_gmt":"2014-02-08T17:45:07","guid":{"rendered":"http:\/\/www.keytlaw.com\/azllclaw\/?p=6734"},"modified":"2017-02-25T10:36:53","modified_gmt":"2017-02-25T17:36:53","slug":"who-signs","status":"publish","type":"post","link":"https:\/\/www.keytlaw.com\/azllclaw\/2014\/02\/who-signs\/","title":{"rendered":"Who Signs the IRS Form 2553 If My Confidential Trust Owns My LLC that Wants to be Taxed as an S Corporation?"},"content":{"rendered":"

Question<\/strong>:\u00a0 I purchased your Gold LLC formation package<\/a> that included a Confidential Trust.\u00a0 My Confidential Trust is the sole owner of my LLC.\u00a0 My CPA advised me that my LLC should be taxed as an S corporation.\u00a0 I am completing the IRS Form 2553, Election by a Small Business Corporation<\/a>, but I am not sure how to show the ownership and who should sign the form.\u00a0 What should I do?<\/p>\n

Answer<\/strong>: Dealing with the IRS with respect to your LLC is different from everybody else.\u00a0 The following only applies to the IRS and tax treatment of your LLC that is owned solely by your Confidential Trust:<\/p>\n

    \n
  1. Because the LLC is a single owner LLC the IRS pretends like it does not exist.\u00a0 The IRS calls a single member LLC a “disregarded entity” for federal income tax purposes.\u00a0 This is the default tax treatment for single member LLCs.<\/li>\n
  2. Because the Confidential Trust is revocable the IRS treats it as a “grantor trust,” which means the IRS pretends like the Confidential Trust does not exist.<\/li>\n
  3. The end result of the application of items 1 & 2 above is the IRS considers you to be the owner.<\/li>\n
  4. Sign the IRS Form 2553 on page 2 Part 1 and after your signature put a comma and print the following text: “individually and as Trustee of the [name of your trust] Trust under Agreement dated [date of your trust agreement], a grantor trust.”<\/li>\n
  5. If you are a resident of a community property state like Arizona and own the beneficial interest in the Confidential Trust as community property then both spouses must sign the Form 2553 per the instructions in item 4 above.<\/li>\n<\/ol>\n

    Send the completed and signed IRS Form 2553 to the IRS via Certified Mail, Return Receipt Requested.\u00a0 Make a transmittal letter that accompanies the Form 2553.\u00a0 Keep a copy of the letter, the Form 2553, the Certified Mail certificate and the green Return Receipt in a save place in case the IRS claims it never got your Form 2553.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Question:\u00a0 I purchased your Gold LLC formation package that included a Confidential Trust.\u00a0 My Confidential Trust is the sole owner of my LLC.\u00a0 My CPA advised me that my LLC should be taxed as an S corporation.\u00a0 I am completing the IRS Form 2553, Election by a Small Business Corporation, but I am not sure how to show the ownership and who should sign the form.\u00a0 What should I do? Answer: Dealing with the IRS with respect to your LLC is different from everybody else.\u00a0 The following only applies to the IRS and tax treatment of your LLC that is owned solely by your Confidential Trust: Because the LLC is a single owner LLC the IRS pretends like it does not exist.\u00a0 The IRS calls a single member LLC a “disregarded entity” for federal income tax purposes.\u00a0 This is the default tax treatment for single member LLCs. Because the Confidential Trust is revocable the IRS treats it as a “grantor trust,” which means the IRS pretends like the Confidential Trust does not exist. The end result of the application of items 1 & 2 above is the IRS considers you to be the owner. Sign the IRS Form 2553 on page 2 Part 1 and after your signature put a comma and print the following text: “individually and as Trustee of the [name of your trust] Trust under Agreement dated [date of your trust agreement], a grantor trust.” If you are a resident of a community property state like Arizona and own the beneficial interest in the Confidential Trust as community property then both spouses must sign the Form 2553 per the instructions in item 4 above. Send the completed and signed IRS Form 2553 […]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[8,51,38],"tags":[],"class_list":["post-6734","post","type-post","status-publish","format-standard","hentry","category-faqs","category-how-do-i","category-tax-issues"],"yoast_head":"\nWho Signs the IRS Form 2553 If My Confidential Trust Owns My LLC that Wants to be Taxed as an S Corporation? - Arizona LLC Law %<\/title>\n<meta name=\"description\" content=\"An explanation of how the grantor of a grantor trust signs an IRS form 2553 when the trust owns an interest in a limited liability company.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/2014\/02\/who-signs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Who Signs the IRS Form 2553 If My Confidential Trust Owns My LLC that Wants to be Taxed as an S Corporation?\" \/>\n<meta property=\"og:description\" content=\"An explanation of how the grantor of a grantor trust signs an IRS form 2553 when the trust owns an interest in a limited liability company.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.keytlaw.com\/azllclaw\/2014\/02\/who-signs\/\" \/>\n<meta property=\"og:site_name\" content=\"Arizona LLC Law\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:author\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:published_time\" content=\"2014-02-08T17:45:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-02-25T17:36:53+00:00\" \/>\n<meta name=\"author\" content=\"Richard Keyt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Keyt\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2014\\\/02\\\/who-signs\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2014\\\/02\\\/who-signs\\\/\"},\"author\":{\"name\":\"Richard Keyt\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/9d6c74d30296559f95e238fa25182391\"},\"headline\":\"Who Signs the IRS Form 2553 If My Confidential Trust Owns My LLC that Wants to be Taxed as an S Corporation?\",\"datePublished\":\"2014-02-08T17:45:07+00:00\",\"dateModified\":\"2017-02-25T17:36:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2014\\\/02\\\/who-signs\\\/\"},\"wordCount\":345,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"articleSection\":[\"FAQs\",\"How Do I\",\"Tax Issues\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2014\\\/02\\\/who-signs\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2014\\\/02\\\/who-signs\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2014\\\/02\\\/who-signs\\\/\",\"name\":\"Who Signs the IRS Form 2553 If My Confidential Trust Owns My LLC that Wants to be Taxed as an S Corporation? 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