Should My New LLC Convert to an S Corporation for Tax Purposes?
Should My New LLC Convert to an S Corporation for Tax Purposes?
Generally speaking if your new entity does not need to be an LLC for tax purposes you should consider converting to an S Corporation for the tax savings. For as long as you satisfy the tax requirement of all corporations of paying the active employee owner a fair and reasonable salary you may also take shareholder distributions that are devoid of the FICA/Medicare component. For all tax issues/changes there is a lot to consider and go over so being sure to consult with your CPA before any changes is the right first step.
SHOULD I INCORPORATE MY BUSINESS AS AN S CORPORATION OR LLC?
