What Is Form 8832?
The Entity Classification Election form is an IRS filing under which an eligible business entity chooses corporate, partnership or disregarded status for US federal purposes.
Also known as: Entity Classification Election, Check-the-Box Election Form.
How Form 8832 works
Form 8832 is filed by an eligible entity, domestic or foreign, which wants a federal tax classification other than the default assigned under the check-the-box regulations, or certainty about its classification, and the election then decides whether the IRS treats the entity as a corporation, a partnership or a disregarded entity. Defaults depend on members and liability: a foreign entity whose members all have limited liability defaults to corporate status. The election can take effect up to seventy-five days before or twelve months after filing, and a change of classification generally blocks a further elective change for sixty months. Certain entity types listed as per se corporations cannot elect, and the classification chosen affects reporting such as Form 5471 and possible hybrid mismatch effects abroad.
Form 8832 vs Check-the-Box
Unlike Check-the-Box, which names the regulatory regime allowing eligible entities to choose a tax classification, Form 8832 is the IRS form through which the election under the regime is made.
Example
Illustrative example: A US citizen in Country A owns all shares of a local limited liability company, which by default is a corporation for US purposes. The owner files Form 8832 electing disregarded status from formation, so US reporting follows the owner, while Country A still taxes the company as a company.
Common misconception
Myth: Filing Form 8832 changes how the company is taxed in its home country.
Reality: Form 8832 changes only the US federal classification, so the entity's status under the law of its country of organisation is generally unaffected.
Frequently asked questions
What is Form 8832 used for?
Form 8832 is used by an eligible entity to elect classification for US federal tax purposes as a corporation, a partnership or an entity disregarded as separate from its owner.
What is the 60-month rule for Form 8832?
Under the Treasury regulations governing Form 8832, an entity changing classification by election generally cannot change again by election for sixty months, with limited exceptions for significant ownership changes.
Related terms
- Check-the-Box — Regulatory regime implemented through Form 8832
- Entity Classification — Underlying US classification concept
- Disregarded Entity (US Single-Member LLC) — Classification outcome available by election
- Form 5471 — Reporting that depends on corporate classification
Related guides
- Incorporation options for location-independent entrepreneurs — Entity choices whose US classification may be elected
- Setting up and managing a digital nomad business — Business set-up decisions for location-independent founders
Sources
Last verified: 2026-10-08. This entry is general information, not tax or legal advice; rules vary by country and change over time.
