Entity changes
Why changes like an S-corp election or a new business must be disclosed early — the #1 cause of rework.
If anything about your business structure changed during the year, tell us early. Ideally, tell us as soon as it happens.
At the latest, tell us while you're working through your tax questionnaire. Structural changes can change which return you file and how the whole year is treated.
Tell us about entity, ownership, payroll, and filing changes before we prepare the return. If you are not sure whether something counts, leave a comment for your tax contact.
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, leave a comment for your tax contact or bring it up in your Filing Readiness meeting.
When a change is disclosed, your answers may point to document requests to back it up. For example, Uplinq may ask for formation paperwork for a new entity.
For an ownership change, we may ask for an updated equity cap table. That document shows who owns what percentage of the company. Upload those documents as requests 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 can change how your income and your own pay are taxed, so flag them early.