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AK Form 8832: What You Should Know
Business Entity (i.e. the IRS considers a business controlled by its owners to be a corporation); or Sole Proprietor (i.e. a corporation that files its own Form 8832 with the IRS and is not subject to the limitation that a corporation can have only one owner); or a Partner in a Partnership (see below, paragraph (ii)). Form 8832, Entity Classification Election — IRS As a business owner, you have two choices for how to classify your business: C corporation; sole proprietor. With this Form 8832, you can choose: If you want to be classified as a C Corporation you have two choices: If you want to be classified as a sole proprietor, only one of the three options below will help you to be treated as a Sole Proprietor: You could be classified with a partner if they are the primary owner of the sole proprietor business. You could be classified with a partner if you are not the sole owner, and he is the primary owner of the sole proprietor business. Either way, Form 8802 or the equivalent can serve as evidence that the business is owned by a partnership. So, while it may help with your tax relief as a business owner, it most commonly is a business partner in all tax reporting. If you choose to be classified as a C corporation, the easiest way to file a Form 8832 is by using Schedule C with Schedule C-EZ. You can only choose to be classified as a C corporation if you are an individual who is filing on Schedule C. If you are a partnership or S corporation, you do not need to file a Schedule C, but you don't have to use Schedule C-EZ or Schedule CRUZ if you choose to be classified as C corporation.
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