Type of Organization when LLC disregarded to S Corp

HOSPMHOSPM Member Posts: 13

Hi Wave,

How does one pick "LLC" as their "Type of Organization", as it's not listed among the 3 options I'm seeing (i.e., Sole Proprietorship, Partnership, or Corporation)?

If there's no way to select LLC, what do you recommend selecting instead assuming the organization is an LLC that's disregarded to an S Corp? Note: S Corp only has one shareholder (a person).

Comments

  • RezaReza Administrator Posts: 24 admin

    Hi @HOSPM

    Which country did you select when you signed up?

  • HOSPMHOSPM Member Posts: 13

    Hi @Reza,

    I selected United States.

  • HOSPMHOSPM Member Posts: 13

    @Reza - thoughts on the abvoe?

  • RezaReza Administrator Posts: 24 admin

    @HOSPM

    If you're trying to complete payments signup (which is one place you provide this information), you should be seeing something like this:

    Where in the app are you selecting your org type?

  • HOSPMHOSPM Member Posts: 13

    Hi @Reza - I'm trying to select my org type under "Your Wave Account" (first menu option on top left hand side of screen when you login to Waveapps.com) -> "Create a new business" (right below the "Personal" Wave account).

    Once you're there, see "Type of Organization" drop down at bottom right. You'll notice the drop down does not include "LLC" as an option.

    See images below and please advise.


  • Ryan_WRyan_W Administrator Posts: 460 admin

    Hey @HOSPM!

    I can clear a few things up here! What you and Reza are talking about are two different things. In the business creation page you're viewing, selecting the business type doesn't have any legal implications. Instead, these selections are purely to generate default accounts in your Chart of Accounts that best match your business (which can be edited anyway, but it's there to be a good starting point). Meanwhile, what Reza is showing you is the application to set up our payment processing feature; when you're setting up payment processing, that's when indicating your legal entity becomes essential and you can see that LLCs are supported legal entity types.

    Hope that helps!

  • SANCHEZCPASANCHEZCPA Member Posts: 3

    The default if you are a single-member LLC is "sole proprietorship."
    The default if you are a multiple member LLC is "partnership."
    If you filed Form 8832 and elected to be treated as a corporation, or if you filed Form 2553 to elect to be treated as a small business corporation , select "corporation."

  • HOSPMHOSPM Member Posts: 13
Sign In or Register to comment.