Business Formation
S-Corp Election
Not a legal entity — a tax election you file on top of an existing LLC or corporation once your profit makes it worthwhile.
What it is
An S-corp isn't something you form — it's a tax election you make with the IRS after you already have an LLC or a corporation. Electing S-corp status lets owner-employees split their income into a salary (subject to payroll tax) and distributions (not subject to self-employment tax), which can meaningfully lower your tax bill once profits are high enough to justify the added complexity.
It's also the single most oversold service in this industry — plenty of online filing services push it to everyone regardless of whether the numbers actually work. We run the numbers first and tell you honestly if it isn't worth it yet.
Who it’s right for
- You already have (or are forming) an LLC or corporation with consistent, meaningful net profit
- Your self-employment/payroll tax savings from splitting income into salary + distributions would outweigh the added payroll and filing overhead
- You're organized enough to run actual payroll and keep clean books — the election adds real compliance work, not just paperwork
Who it’s wrong for
- You're a sole proprietor with no entity yet — you cannot elect S-corp status directly; you'd need to form an LLC or corporation first
- Your profit is too low for the payroll and extra filing costs to make sense — for many small businesses that's a real break-even point, not a given
- You want to avoid running payroll — S-corp status requires paying yourself a 'reasonable salary' through payroll, not just taking distributions
What we do
- 1Run the actual numbers on your situation before recommending the election — this should never be a default upsell
- 2Confirm timing, since a late election can mean waiting until next year or requesting relief from the IRS
- 3File Form 2553 with the IRS
- 4Connect you with payroll setup so the 'reasonable salary' requirement is handled correctly from day one
- 5Flag the ongoing compliance this adds (payroll filings, more detailed bookkeeping) so there are no surprises
What it costs
Custom
[PLACEHOLDER] — S-Corp election pricing isn't finalized yet; contact us for a quote based on your entity and timing