I recently formed an LLC for my software side business. The income generated is between 5-10k a year. I have also filed and receivied a Federal EIN.
I think I intend to take money out or "pay myself" at the end of the year (Dec 31). What are the pros and cons are filing form 8832 to be taxed as a Corporation?
@Robby Pond, in the situation you describe there are really no advantages for your small business to be a "corporation".
A single owner LLC can file as a sole proprietor on Schedule C of your Individual Tax Return.
More than one owner/partner file a Partnership.
You always have a one-time option to convert to a corporation in the future when you are seeking outside investment.
Taxation as a corporation will make your company subject to double taxation. So you pay income tax on the corporate entity, and then again when you move the money either through payroll or payout in dividends.
For a partnership or sole proprietor entity which is the default your taxation runs right through your income and gets taxed at that rate.
In both cases the expenses can be removed from the taxes though it is easier to track defered expenses in corporate entities then partnership versions (as in expenses that you have accrued but did not have sales to offset to get the tax sheild).
Since you already have income meansing sales above expenses then the simplicity of the tax problem is over stated and the default state will likely be your easiest solution.
NO BENEFIT to being taxed as a corporation. Now, the income from the LLC passes straight to you, without being taxed at the LLC level. No reason to change that.