Converting a Single Member LLC to an S Corp

Converting a single member LLC to an S corp may be a good move for many small business operators.Many people mistakenly set up a single member LLC when they should be using an S corporation.  The main reason a small business entrepreneur would use an S corporation over a single member LLC is the tax reporting.  A single member LLC is "disregarded" for federal income tax purposes, which means the income and expenses of the company are reported on the member's personal tax return, Schedule C.  Schedule C income is subject to self-employment tax, not to mention a high rate of an audit.  An S corporation can shield the business owner from some of the self-employment tax by taking some income as a salary, and the balance on a form K-1, which is not subject to this tax.Converting a single member LLC to an S corp involves making a tax election with the IRS, preparing a resolution then amending the LLC operating agreement to conform with the new tax election.

Our firm can do this for you if you for a flat fee of $350. Or, you can buy a kit to do it yourself.To get started, call 303-398-7032 or click here to send us a message.  We will need copies of the original filing documents and operating agreement (if you have one) to get started.

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