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I have already an LLC in Michigan and I am the only resident agent/member of it. I am now going to apply for an EIN.

Is it possible if (After getting EIN) I change my LLC type (disregarded entity or C type or S type or corporation or change in number of members) for tax saving ?

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Is it possible if (After getting EIN) I change my LLC type (disregarded entity or C type or S type or corporation or change in number of members) for tax saving ?

You marked your question as "real-estate", so I'm guessing you're holding rental properties in your LLC.

That means that you will not be able to qualify for S-Corp, only C-Corp treatment. That in turn means that you'll be subject to double taxation and corporate tax rate. I fail to see what tax savings you're expecting in this situation.

But yes, you can do it, if you so wish. I suggest you talk to a licensed tax adviser (EA/CPA licensed in your State) before you make any changes, because it will be nearly impossible to reverse the check-the-box election once made (for at least 5 years).

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Your question mixes up different things. Your LLC business type is determined by how you organize your business at the state level. Separately, you can also elect to be treated in one of several different status for federal taxation. (Often this automatically changes your tax status at the state level too, but you need to check that with your state tax authority.)

It is true that once you have an EIN, you can apply to be taxed as a C Corp or S Corp. Whether or not that will result in tax savings will depend on the details of your business. We won't be able to answer that for you. You should get a professional advisor if you need help making that determination.

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  • Thanks for your kind advice. Are we please required to identify the type of LLC for requesting EIN ? Jan 11, 2016 at 1:15
  • @MuhammadSaleem you'll have to select the appropriate category on the SS-7 form (paper or online), yes.
    – littleadv
    Jan 11, 2016 at 1:27

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