Should you elect S-corp?
What an S-corp election does, when it tends to make sense, and the deadline to keep in mind.
Your Uplinq tax team can help decide whether S-corp treatment fits your numbers before you make the election.
An LLC can elect to be taxed as an S-corporation. That may reduce self-employment tax in some situations, but it also adds responsibilities.
An S-corporation is a tax treatment, not a new legal entity. Self-employment tax is the Social Security and Medicare tax many owners pay on business profit. Payroll means paying yourself wages through a payroll process. A separate return means the business files its own tax return.
You make the election by filing a form, and timing matters. Ask your Uplinq tax team to review your numbers before relying on an S-corp election.
Whether an S-corp is right for you depends on your numbers. Your Uplinq tax team can run the analysis.
What this article will cover
- What the S-corp election changes
- Roughly when it starts to make sense
- The filing form and deadline to be aware of