yes, it is a single member LLC. the good reason to have a late S election on 2553 is the client didn't know that until now. the former CPA hasn't told him that. Just tell him he needs to do W2 and then he did W-2 for his employees for 3 months and  changed his mind and switched to 1099-MISC. That is the part I am worried a lot. Thank you for your response. Please advise me what I should do?