How often can I switch between an S Corporation and a Disregarded Entity?

The IRS does not place strict limits on how many times you can switch between an S Corporation and a disregarded entity. 

However, there are limitations:

Administrative Requirements: Each time you switch, there are forms to file and the IRS needs time to process those changes.

• S Corp to Disregarded Entity: you must file Form 8832 (Entity Classification Election) and file a Statement of Revocation of the Subchapter S election
• Disregarded Entity to an S Corporation: you must file Form 8832 and Form 2553 (Election by a Small Business Corporation). 

Tax Implications: Frequent changes between entity types can complicate your tax filings and may raise flags with the IRS. In particular, switching between an S Corporation and a disregarded entity may affect your tax treatment, self-employment tax, and deductions.

Timing Restrictions: If you revoked your S Corporation status, you generally need to wait 5 years before you can re-elect S Corporation status for that entity, unless you have IRS approval to re-elect earlier.