So I filed my LLC paperwork last week and just realized I checked the box for a corporation instead of an LLC. The state already approved it. Am I completely screwed or is this fixable? It's a small craft business, just me, no employees. I feel like such an idiot.
Business Registration
I accidentally selected the wrong business entity during registration
Depends on the state but generally you can file a correction or amendment. Call the Secretary of State office first thing Monday. They're usually more helpful than the website makes them seem.
A corporation for a one-person craft business. You really went all in on the corporte overlord vibe huh
Lol yes Im ready to issue myself shares and hold a board meeting in my living room. But seriously, is there a penalty for this kind of mistake?
Might be a small fee for the amendment, depends where you are. Some states let you just refile. Did you get an EIN yet? Because that can complicate things if you told the IRS you're a corp.
i did the exact same thing in 2021. filed as a corp, freaked out, called the state, and they had me file articles of amendment. took like two weeks and cost $50. not the end of the world. also my accountant laUghed at me but whatever
Honestly the bigger issue is that a corp has more ongoing formalities. annual meetings, minutes, etc. if you wanted the simplicity of an LLC you definitely want to fix it now, not after you've been operating for a yer.
Wait, does the IRS even care? Like if you filed as a corp with the state but elected S-corp or whatever... I'm genuinely asking Because I have no idea how this works.
the IRS cares about what you put on your SS-4 when you got your EIN. if you said corporation there, you might need to call them too. fun times.
Ugh, I did already get the EIN and I think I clicked corporation on that too. Okay so state amendment first, then IRS. Thank you all, this is making me feel less panicked.
Update us when it's fixed! Genuinely curious how much of a headache this turns out to be.