2 member LLC as S Corp downsizing to 1 member LLC

Ram2022-1 · ‎November 22, 2022

Hello,

Myself and my wife run a 2 member LLC(50-50) in New Jersey. Last year we submitted form 2553 to IRS to elect as S Corp.

I am planning to resign and my wife will be the sole member in the LLC soon. From my understanding, I know she has to submit a Amendment in NJ. The EIN responsible party currently is my wife and there is no change in that in IRS.

Question is: Should she submit the form 2253 again with IRS with updated members? The LLC will still continue as S-Corp single member.

Mark_R · ‎November 22, 2022

Welcome to the QuickBooks Community, @Ram2022-1.

I want to ensure you'll get the best advice if you still need to submit form 2253 again to the IRS with updated members.

While we can't confirm it on our end, I recommend contacting the IRS. This way, they can verify if you still need to submit form 2253 again or if they require additional data.

As always, you can visit our QuickBooks Community help website if you need tips and related articles in the future.

Our doors are always open to help you again if you have other concerns with QuickBooks. Wishing you continued success!

Rainflurry · ‎November 23, 2022

@Ram2022-1

No, do not resubmit Form 2253. S-corp stock ownership changes are reported when you file your S-corp tax return.

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2 member LLC as S Corp downsizing to 1 member LLC

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