S-corp Benefits

📋 Key Takeaways Late Election Relief: Missing the IRS Form 2553 deadline does not automatically disqualify a business from S-Corporation tax treatment if relief requirements are met. IRS Safety Net: Under Revenue Procedure 2013-30, the IRS allows late S-Corp elections within a 3-year and 75-day window for eligible businesses that acted in good faith. Reasonable […]

📋 Key Takeaways Tax Efficiency: Switching to an S-Corp election can save profitable LLC owners thousands of dollars annually by reducing self-employment taxes on business profits. Income Splitting: The structure allows you to divide income into two categories: a “reasonable salary” subject to payroll taxes and owner distributions which are not. IRS Compliance: To avoid