Tell us about entity changes before we file
Why changes like an S-corp election or a new business must be disclosed early — the #1 cause of rework.
Tell us about entity changes before we file
If anything about your business structure changed during the year, tell us early — ideally as soon as it happens, and at the latest while you're working through your tax questionnaire. Structural changes don't just add a line to your return; they can change which return you file and how the whole year is treated. Surfacing them late is the single most common cause of rework.
A structural change discovered after we've started preparing can mean redoing work — sometimes the entire return. Disclosed up front, the same change is just a question and a document. Earlier is always cheaper.
Changes worth flagging
These are the kinds of changes that affect your return and should be disclosed before we file:
- A new business or entity you started or acquired this year.
- An S-corp election — electing to have your business taxed as an S-corp changes the return you file and how owner pay is handled.
- A change in entity type — for example, moving from a sole proprietorship to an LLC, or an LLC electing corporate treatment.
- Ownership changes — new owners, departing owners, or a shift in ownership percentages.
- A change in where you operate or file — adding a state, moving your business, or starting to do business across state lines.
- Closing or merging an entity during the year.
If you're not sure whether something counts as a structural change, mention it anyway. It's far better to raise it and have us say "no impact" than to leave it out.
How to disclose a change
You don't need a special form. The tax questionnaire asks about structure, ownership, and major changes — answer those honestly and the change is on the record. If something doesn't fit a question, or you want to be sure it's seen, leave a comment for your tax contact or bring it up in your Filing Readiness meeting.
When a change is disclosed, your answers may open document requests to back it up — for example, formation paperwork for a new entity, or an updated cap table for an ownership change. Upload those as they appear.
Your tax contact would rather hear about a change that turns out not to matter than miss one that does. A quick comment is all it takes.
The two that catch people most often are S-corp elections and entity-type changes — both change how your income and your own pay are taxed, so flag them early. The guides below explain why.