PPP Change in entity type

Technical topics regarding tax preparation.
#1
Posts:
43
Joined:
16-Jul-2018 8:34am
Location:
IL
I have a client that is organized as an LLC and has been taxed as a partnership from inception through 2019. In 2020, they are planning on making an S election under the late-filing procedures (effective 1/1/2020). Their PPP loan amount was based off of their 2019 self-employment income plus the payroll they had to one other employee. In 2020, they are paying themselves as a salary. Has anyone seen any guidance on how the SBA looks at this situation? I know they released guidance with respect to ownership changes but I don't think that applies here.
 

#2
Posts:
400
Joined:
19-Nov-2014 5:47pm
Location:
USA
I have the same situation with single member LLC's selecting S-Corp status for 2020. I'm guessing no guidance for these situations yet...
 


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