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 »

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!

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

Re: Establishing LLC, taxed as S Corporation

Post by trfie »

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?

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