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There is a misconception floating around out there that an S Corp is a standalone entity. Not true. There are several entity types, but the three most common are[...]
Category - Chap 6 - S Corporation Election
Yes, you are able to engage in revisionist history and retro activate your S Corporation election to January 1, 2020, and have your income avoid a large chunk of self-employment taxes. Which year? Good question, and Yes, of course, it depends. First [...]
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Not sure if you want to have a full-blown S Corporation? The break-even point where an S Corp makes sense is about $30,000 in net income after expenses (remember, our all-in S corporation package is $2,940 and the savings is 8 to 10%- $2,940 divided [...]
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There is a near certainty that we can make the S Corp election retroactive to January 1 of 2020. As mentioned earlier, one of the pillars of S Corps is to pay a salary to the shareholders. If you are reading this after Thanksgiving dinner and yet [...]
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It’s July and your golf game is just as crummy as it was in May so you start focusing on your business. You talk to us, and we decide that the S corporation election is the way to go. We don’t go back to Q1 and Q2, and run late payroll. That is an [...]
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Behind the scenes there are some technical things going when electing to be an S Corp. The LLC essentially transfers all of its assets and liabilities to the corporation in exchange for the corporation’s stock and then distributes stock to its [...]
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Behind the scenes there are some technical things going when electing to be an S Corp. The LLC essentially transfers all of its assets and liabilities to the corporation in exchange for the corporation’s stock and then distributes stock to its [...]
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Massaging of the equity section of your balance sheet is required when being taxed as an S corporation. But what if the underlying entity is an LLC? Good question. We believe, for elegance sake, that an LLC being taxed as an S corporation should walk[...]
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S Corps have relished being the class favorite for all kinds of reasons as stated in this book. However, the original C Corp could be making a comeback based on flawed logic from the Tax Cuts and Jobs Act of 2017[...]
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When you revoke S corporation status, you will trigger a taxable event. A potentially big one. Upon revocation, assets are distributed to the S Corp shareholders at fair market value. Cash is easy. An automobile is generally not a big deal. But real [...]
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