When does it make financial sense for you to file taxes as an S corporation? Here's the math. (super long post)

[setsenia]

@sherwood Thanks for this! I've been thinking it's about time for me to incorporate, but I know it's a pain. I look forward to diving into this later. (...No I don't, who am I kidding )

 

[theimperfectchristian]

@sherwood Good post. I will be sending my friends who ask this question to this URL for a long time to come.

 

[sherwood]

@theimperfectchristian Thanks! I tried to make it as comprehensive as possible, as I'm aware there's a lot of confusion / conflicting info out there.

 

[38odh29843]

@sherwood Hi , I have one simple question
I have llc stablished in Jan 2020 . Can I convert to S corp from last year that 2021 before filing taxes for 2021 .
Your response much appreciable
Thanks in advance

 

[sherwood]

@38odh29843 No, I believe you can only submit for the coming year, not retrospectively. unfortunately, you've missed your chance for 2022, as you need to file form 2553 by March 15 of the year you want to get the tax election for. Submit the form before March 15 2023, and you can use S Corp designation for your 2023 taxes.

 

[38odh29843]

@sherwood Thanks for your respond

 

[38odh29843]

@sherwood Thanks for your respond