The wrong business structure could be costing you thousands in unnecessary taxes. We'll analyze your situation and recommend the setup that keeps the most money in your pocket. We serve business owners across all 50 states with virtual consultations and entity analysis.
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Discover if LLC or S-Corp is right for your business and save thousands in taxes.
Both LLCs and S-Corps offer benefits, but the right choice depends on your business structure, income level, and tax situation.
| Factor | Limited Liability Company (LLC) | S-Corporation (S-Corp) |
|---|---|---|
| Liability Protection | Full personal asset protection | Full personal asset protection |
| Taxation (Default) | Pass-through (self-employment taxes on all income) | Pass-through with W-2 + distribution option |
| Self-Employment Taxes | 15.3% on all net income | Only 15.3% on W-2 wages (distributions taxed differently) |
| Setup Complexity | Simple filing (Articles of Organization) | Moderate (Form 2553 election required) |
| Ongoing Compliance | Minimal (annual renewal) | More stringent (payroll, W-2s required) |
| Ideal For | Freelancers, consultants, rental property owners | Higher-income businesses with significant profit |
| Tax Savings Potential | Moderate (deductions and pass-through) | Significant (if structured correctly with reasonable wages) |
| Income Threshold | Beneficial at any income level | Typically beneficial above $60K-$100K profit |
Pro Tip: Many business owners don't realize they can elect S-Corp taxation for their LLC (LLC taxed as S-Corp). This powerful strategy can save tens of thousands in self-employment taxes. Let's analyze your situation.
Complete Form 1065 (partnership returns) or Schedule C preparation with all applicable deductions and credits to minimize your tax burden.
Expert Form 1120-S preparation with proper W-2 wage allocation and distribution reporting to maximize your tax savings legally.
In-depth analysis of your business situation to determine whether LLC, S-Corp, or another structure is optimal for your circumstances.
Calculate and plan quarterly estimated tax payments to avoid penalties and keep cash flow smooth throughout the year.
Year-round planning including expense timing, retirement plan optimization, equipment depreciation, and strategic business deductions.
Illinois LLC renewals, S-Corp franchise tax, and all state-specific filings to keep your business in good standing.
Our strategic entity selection and tax planning can save you thousands annually. S-Corp elections alone typically save $5,000-$15,000+ per year.
Both LLCs and S-Corps provide personal asset protection. We ensure your structure provides maximum legal protection for your personal wealth.
Our CPAs have extensive experience with business structures. We guide you through every decision with clear explanations of pros and cons.
We're available throughout the year for quarterly planning, strategic adjustments, and questions about maximizing your business structure.
Form 2553 allows you to elect S-Corporation taxation status for your LLC or Corporation, potentially saving thousands in self-employment taxes.
Form 2553 is the IRS form used to elect S-Corporation taxation status. Instead of paying self-employment taxes on all business income, S-Corps allow owners to:
S-Corp elections typically make sense when:
The IRS closely examines S-Corp elections to ensure owners aren't paying unreasonably low wages to minimize employment taxes. We structure your S-Corp properly to:
Let us handle your Form 2553 filing to ensure it's done correctly and defensibly.
Whether you're a consultant, freelancer, small business owner, or real estate investor, we have the expertise to optimize your entity structure.
CPAs, marketing consultants, IT professionals, and other service providers benefit from strategic entity selection and deduction planning.
Designers, writers, photographers, and content creators can structure their businesses for maximum tax efficiency and liability protection.
E-commerce, retail, service businesses, and other small enterprises benefit from proper structuring and year-round tax planning.
Property investors benefit from LLC structures for liability protection and strategic tax planning for rental income and capital gains.
LLC and S-Corp refer to different things: LLC is a business structure (how your business is organized), while S-Corp is a tax classification (how your business is taxed). You can have an LLC taxed as an S-Corp. The key difference: S-Corps require owners to pay themselves reasonable W-2 wages, then take remaining profits as distributions to minimize self-employment taxes. This typically saves money only for higher-income businesses.
Yes! You can elect S-Corp taxation for your existing LLC by filing Form 2553 with the IRS. Many business owners don't realize this option exists. If your LLC is generating significant profit, this election could save you thousands annually in self-employment taxes. We handle the entire Form 2553 filing process and ensure proper setup.
Savings depend on your income and the split between W-2 wages and distributions. Generally: at $60K net income you might save $2,000-$3,000; at $100K you could save $5,000-$8,000; at $150K+ the savings can exceed $10,000-$15,000 annually. We analyze your specific situation to calculate potential savings before you make any decision.
Reasonable wages are what you would typically pay someone to perform the work you do in your business. The IRS scrutinizes S-Corps that pay owners very low wages while taking large distributions. We determine reasonable wages based on: your job duties, industry standards, your experience, and the time you dedicate to the business. This protects you in case of an IRS audit.
Probably not initially. Most new businesses start as LLCs for simplicity. As your income grows and reaches $60,000+ in annual profit, an S-Corp election becomes more attractive. We recommend revisiting your entity structure annually to ensure you're positioned optimally as your business grows.
Multi-entity situations are complex. Each entity may have different optimal tax structures. Some business owners benefit from consolidating, while others benefit from keeping entities separate for liability or tax reasons. We analyze your complete picture and recommend the most tax-efficient structure for your situation.
If the IRS determines your W-2 wages are unreasonably low, they can reclassify distributions as wages, resulting in back taxes, interest, and penalties. This is why proper wage documentation is crucial. We structure your S-Corp defensibly and maintain thorough records of wage justification to protect you in any audit.
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We analyze your current or proposed business structure, income projections, and tax situation to recommend optimal entity options.
We calculate projected taxes under different entity structures so you can see actual dollar savings from each option.
Once you decide, we handle all filings: LLC formation, S-Corp elections (Form 2553), state registrations, and EIN applications.
Quarterly planning, annual tax preparation, compliance filings, and strategic adjustments throughout the year.
"Mohammad restructured my LLC to an S-Corp and saved me $8,500 in self-employment taxes the first year alone. The consultation was free - the savings were life-changing."
Schedule your free consultation today. No obligation, no pressure - just honest answers from a licensed CPA.
