LLC Taxed as S-Corporation
Form 2553 Election & Self-Employment Tax Reduction
Save an average of $3,000 to $10,000+ per year in 15.3% Self-Employment Taxes (FICA) by electing S-Corp status for your profitable LLC with IRS Form 2553.
Strategic Tax Optimization for Profitable LLC Owners
By default, a single-member LLC is taxed as a disregarded entity (sole proprietorship), meaning 100% of your net profits are hit with the 15.3% SE tax. By making an S-Corp election, only your W-2 wage is subject to FICA, while the remaining profits flow through as distributions on Schedule K-1 free of self-employment tax.
Key Advantages for Your Business
Eliminate 15.3% Self-Employment Tax
Split net business profits between a reasonable W-2 salary and shareholder distributions that are exempt from FICA taxes.
Late S-Corp Election Relief
Missed the 75-day statutory window? We file under Rev. Proc. 2013-30 to grant retroactive S-Corp status up to 3 years back.
Reasonable Compensation Defense
Protect against IRS payroll recharacterization audits with wage data backed by Bureau of Labor Statistics data.
Retain LLC Legal Simplicity
Enjoy corporate tax benefits without having to adopt cumbersome corporate board resolutions and formal C-Corp stock registers.
What You Receive
Frequently Asked Questions
When does an LLC make financial sense to become an S-Corp?+
Generally, once your LLC generates $50,000 to $60,000 or more in consistent annual net profit after ordinary business expenses, the tax savings typically outweigh the additional payroll and 1120-S accounting costs.
Can I take all profit as distributions without paying myself a salary?+
No. The IRS strictly requires shareholder-employees of S-Corporations to pay themselves a 'reasonable salary' subject to payroll withholding before taking any dividend distributions.
Book This Service with Viktor
Connect directly with Vikram Singh Angurala in Albany, NY or on a secure video call to get your file processed accurately.