Reflection of the Week
Should I Make an S-Election
Hey all!
Happy Friday.
Tax season is in full swing, and my most frequently asked question from my business owners is, “Should I become an S-Corp?”
With the S-Election deadline about two weeks away, I figured it’s a good time to revisit this question. Many small business owners think or have been told that the S-Corp election is the way to reduce taxes for your business because it allows you to save on self-employment tax. While accurate, blanket advice like that doesn’t always make sense. Whether to elect this status for your business as an S-Corp or not is a technical question with broad implications.
Because of the complexity associated with this decision, I split up this discussion into two different parts. You can find Part 1 here and Part 2 here.
I’ve also done a deep dive into the 1120S return here.
I hope this helps with your S-Corp dilemmas.
Questions of the Week
- How is your business structured?
- When was the last time you revisited this structure?
- Is it time to change?
Tool of the Week
If you feel like the S-corp is the way to go for you, here is Form 2553 to make the election and the instructions