What is required in California when filing form 2253 (LLC to be taxed as S-Corp) for federal?

Mar 18, 2014 1 Replies

I am currently a single member CA LLC, and in the middle of filing form 2253 (LLC ELECTING TO BE TREATED AS AN S CORPORATION).



However, for the State, I am confused as to whether anything needs to be done in CA. My understanding was for CA purposes, the entity remains an LLC. But talking to a CPA friend, he is insisting that the LLC needs to be converted to an S-Corp in CA

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I am clear on the process of converting an LLC to a corporation in CA, but my question is whether this is necessary in my case. I would prefer to leave the entity as an LLC taxed as S-Corp. Is there a reason why it may be preferable to go way vs the other, as far as the CA state is concerned.


CA follows federal automatically. If you elect S Corporation status by filing the federal form 2553, you are electing S Corp. status for CA. You would then start filing CA Form 100S. If you were a CA C Corporation electing S status federally and desired to remain a CA C. Corp., then CA has a form that you can file to make the election (Form 3560). I am not aware of anything in CA law that would allow you to remain a CA LLC if you file the form 2553.

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