Convert to S-Corp? When, Why, and How to Do It

In this video I cover when, why, and how to convert your LLC or Corporation over to S-Corporation taxation.
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Topics this Video Covers
* S-Corporation Taxation can provide big tax benefits to owners compared to C-Corp, Single Member LLC, or Multi Member LLC (Partnership) Taxation
* The “S-Corporation” is not a separate legal entity. It is either an LLC or a Corporation, that has elected “S” Tax Treatment
* You can elect “S Corp” tax status for any future year (and some past or current years) if your entity is eligible
* Election is as simple as faxing a timely Form 2553 to the IRS
* Additional filing requirements, shareholder limitations, state recognition (or not), state pass-through tax, and other general formalities, costs, fees, for maintaining an S Corporation

[@valerysutton234]

Wow this is amazing information, thanks for the insight!

[@ankitpatels1986]

Thank you so much for information

[@araceliscarbonell587]

Thank you for your training that is excellent prepared/explained. I have a question related to LLC-Partnerships as LLCs. One of these LLC Owner has a an S corp. Can Owner transfer income earned by the LLC t the S Corp & pay Payroll through the S Corp.? What to do in this scenario in order to get that advantage?

[@joekrakosky3477]

I appreciate the content!

[@ChadPavelcpa]

Glad this is helpful.

[@franklenderson3813]

Great video and breakdown

[@ChadPavelcpa]

Glad you liked it!

[@JtotheRizzo]

I thought if you were already setup as an LLC (disregarded or partnership tax status) and you elect to be taxed a S-corp, then you can still have other entities, including other LLCs be members of your LLC/S-corp. At the 6:25 mark you state otherwise.

[@marysanders9423]

You are a single owner operator LLC can I take my drawer off of the profit of the company?

[@ChadPavelcpa]

No - your draw is not a deduction from profit. If you are an S Corp then your w-2 salary is deducted from profit just like you’re employees.