TL;DR: The form an eligible entity files to choose how the US taxes it: as a corporation, a partnership or, with one owner, a disregarded entity. It is the check-the-box election.

What it is. Under the check-the-box rules, a business entity that is not automatically a corporation (a per se corporation, such as a US corporation or a foreign public company form named in the regulations) can choose to be taxed as a corporation, a partnership or, if it has one owner, a disregarded entity. Form 8832 is how it makes that choice. An entity that never files one gets a default: a US LLC is a partnership or disregarded entity, while a foreign entity whose owners all have limited liability, such as a Luxembourg S.à r.l. or a Dutch B.V., is a corporation.

Who files. The entity, signed by every owner or by an officer, manager or member authorised to make the election. It goes to the IRS service center in Kansas City or Ogden (foreign entities file in Ogden), and a copy is attached to the entity's federal return for the year of the election, or to its owners' returns if the entity files none.

When. There is no annual deadline. The election can take effect no more than 75 days before and no more than 12 months after the date it is filed. After an entity changes its classification by election, it generally cannot change again for 60 months, and the change is treated as deemed transactions, such as a deemed liquidation, that can trigger tax. A missed deadline can often be fixed under Rev. Proc. 2009-41 within 3 years and 75 days.

Who files Form 8832An eligible entity files Form 8832 to elect its US tax classification; the election can take effect up to 75 days before filing.Eligible entity(not a per secorporation)Form 8832effective up to75 days backIRS + a copywith the return
Pick the classification, then live with the deemed transactions.

Worked example

A US real estate fund forms a Luxembourg S.à r.l. on 1 March to buy an office building, and it is the only owner. By default the S.à r.l. would be a corporation, because all its owners have limited liability. The fund files Form 8832 by 15 May, within 75 days, electing disregarded status from 1 March. Because the election takes effect on the day the S.à r.l. is formed, it is an initial classification: no deemed liquidation and no 60-month clock. The fund then reports the S.à r.l. on Form 8858.

Where you'll see it: Setting up blockers and foreign holding companies, planning before an exit, and checking a vehicle's classification before deciding between a 5471, 8865 or 8858.

Code: Treas. Reg. §§ 301.7701-2, 301.7701-3; Rev. Proc. 2009-41; Instructions for Form 8832 · Related: DRE (disregarded entity), Form 8858, Form 5471, Form 8865, Blocker

Full explainer: check-the-box elections and Form 8832 →

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This glossary is general information, simplified for learning. It is not tax, legal or investment advice, and real structures turn on facts and documents not shown here.