According to the IRS, a corporation or LLC must file an S-Corp election within 75 days of formation for the election to take effect in the first tax year. However, if you missed the deadline, we can still file the S-Corp election and get it approved. It’s what we do – more tha...
Our S Corp book will show you how to reduce your self-employment taxes through an S Corporation election and obtain S Corp benefits & advantages.
Form 1120-Sis essentially an S corp’s tax return. Often accompanied by aSchedule K-1, which delineates the percentage of company shares owned by each individual shareholder, Form 1120-S reports the income, losses, dividends, and other distributions that the corporation has passed to its shareh...
To officially become an S Corp, a corporation needs to file an election via Form 2553. If the IRS grants its request, it will be able to enjoy the pass-through taxation benefits that all S Corps do. S Corp Pros and Cons Just like every other type of business structure, S Corps have...
to a state's laws that specify how a corporation must be formed. At minimum, articles of incorporation must be filed with theSecretary of State. An S corporation must also file a special form with federal and state tax authorities that notifies them of the election of the subchapter S ...
If you’re starting a new business, S-corp taxes is something you should explore if you want to avoid “double taxation” and corporate-level income taxes.
Let’s say it is March 2024 (tax season) and you’re freaking out because you forgot to make the S Corp election earlier. You can still file a late S Corp election Form 2553 back to January 1, 2023 but there are hiccups. Isn’t hiccups such a friendly word? Sort of like bumps in...
Another critical point to communicate is what the LLC or C Corporation did to fix the situation upon learning they hadn’t requested S Corp election correctly. If you’ve set your sights on S Corp tax treatment effective in the following tax year, you can file Form 2553 anytime in the ...
S corps can obtain an EIN by completing and filing IRS Form SS-4. 7. Elect S corp status Once you’ve incorporated your business and met the S corp requirements, you can gain S corporation status by filing Form 2553 (Election by a Small Business Corporation) with the IRS. All of your...
What is the 2% rule for S corp? If you own 2% or more of your company’s shares, you must treat certain fringe benefits as taxable income, including health insurance and life insurance premiums. This prevents owners from avoiding taxes by taking compensation as tax-free benefits instead of ...