It's common for businesses to seek changes in their ownership structure or to add new members and shareholders. From a tax standpoint, certain scenarios may necessitate additional tax documentation submissions to the IRS to ensure the company remains compliant following these modifications.

If a company modifies its ownership structure in a way that alters its tax entity classification, it must submit Form 8832 (Entity Classification Election) to the IRS.

For instance, if a company initially registered as a two-member LLC decides to transition to a single-member setup, it would be required to submit Form 8832 to formally elect the new tax classification with the IRS. Similarly, if an entity initially had only one member but later chooses to include another member, thereby defaulting to a partnership structure, it would also need to file Form 8832.