S-Corp Conversions & Setup

Get the Most Benefit from an S-Corp

We’ll discover if an S-Corp is right for you, help you convert to an S-Corp and then run the accounting & tax so you can focus.

You Must Maximize but Stay Compliant

It’s not enough to just convert your sole proprietorship to an S-corp, you’ll want to make sure that you make wise choices to abide by the IRS rulings on reasonable salaries, document requirements & 1120S tax returns.

Sole Prop vs. S-Corp

We'll help you compare LLC Sole Prop taxation to S-Corp taxation, so you can know the difference and choose correctly.

Determine a Resonable Salary

Sole proprietorships will owe self employment tax on 100% of their net income.

Net Profits

12.4% Social Security Tax (up to limit of $147k)
2.8% Medicare Tax

S-Corp Taxes

Owners will be paid a salary from their corporation, and then they can take owners dividends.

Net Profits
($50,000 S-Corp Salary)
Social Security Taxes
Medicare Taxes
Total SE Taxes Due
Annual SE Tax Savings

12.4% Social Security Limits

Any income over the Social Security Limit of $147k (2022), is not subject to Social Security tax.

Should You become an S-Corp?

When does an S-Corp Make Sense?

We’ll dive into your books, tax return, goals & your profession to understand whether or not an S-Corp is right for you.  You’ll want to consider converting to an S-Corp if the tax savings, asset protection, and other benefits outweigh the cost of compliance.

Additional Requirements After S-Corp Conversion:

1120S Tax Return

Conversion to S-Corp Using 2553 Form

Corporate Documents

Tax Plan Analysis

Perform a Reasonable Salary Analysis

Consider Investment Goals

Exhaust All Tax Planning Strategies