Establishing LLC, taxed as S Corporation

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trfie
Posts: 163
Joined: Wed Feb 04, 2015 12:35 am

Establishing LLC, taxed as S Corporation

Post by trfie » Tue Jul 23, 2019 3:18 pm

I am starting a business, and from researching many aspects I believe a sole proprietorship vs. S corporation would be the best structure, and based on these 2 I believe an S corporation (or electing to be taxed as one) would make the most sense financially.

I have not done this before, but the plan is to establish an LLC and then elect S corporation taxation. Do you recommend that I obtain professional guidance on this process, and are there recommendations for individuals/companies? If not, are there any straightforward guides on the Internet? I have not come across one yet. Or would a software program (and which one) take care of all my needs?

Background:
I have done my personal tax return for many years, which is also a bit complex because of real estate. I know establishing an S corporation is very complicated, but my understanding is that by establishing an LLC I can avoid a lot of the S corporation filings and paperwork. I would be looking to know which forms I have to file federally and in my state, and when, as well as any tax preparation for the business (I believe most of it will be done on my personal tax return since it is pass-through, but believe there are a few separate tax forms I would have to file, so I would need to know which ones and when). Not sure if I need to do something special for payroll.
I came across Halon Tax on internet searches, they have a $600/year package for businesses with revenue up to $100,000 which includes a business tax return + CPA support.
They have tax software for $250 that does the business tax return.
Or can I use regular commercial software like Turbotax or Taxact?

Thanks!

cimorene12
Posts: 601
Joined: Fri Dec 02, 2011 3:10 am

Re: Establishing LLC, taxed as S Corporation

Post by cimorene12 » Tue Jul 23, 2019 4:40 pm

I have an LLC taxed as an S Corp. There's an MMM article about hiring out for the more complicated situations which applies here. Definitely get a professional CPA and do not DIY.
https://www.mrmoneymustache.com/2016/02 ... wn-taxes/

I know that ERErs find an optimal solution, but hiring out here IS the optimal solution. A normal 1040 preparation is fine for anybody willing to read through the instructions, and even easier using something like TurboTax. But handling your LLC/S Corp corporate filing is another thing entirely.

trfie
Posts: 163
Joined: Wed Feb 04, 2015 12:35 am

Re: Establishing LLC, taxed as S Corporation

Post by trfie » Tue Jul 23, 2019 5:46 pm

Thanks, I did read that. The person he recommended had 1 terrible review and reportedly received 11,000 inquiries after his article. Any thoughts on how to select a person/company?
And does $600/yr sound reasonable?

cimorene12
Posts: 601
Joined: Fri Dec 02, 2011 3:10 am

Re: Establishing LLC, taxed as S Corporation

Post by cimorene12 » Tue Jul 23, 2019 10:29 pm

As far as payroll goes, I have a payroll company that handles my quarterly filing and sending my wages. I just looked in my area for a CPA who could handle it and had good reviews. I've been going to her since I moved to this state.

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