No, just the 2553.
Be sure you know ALL of the ramifications of being taxed as a corporation (such as the extra time and money to file a separate tax return, put yourself on payroll, file quarterly employer forms, and pay Federal Unemployment) before you make such a decision.
No, just the 2553.
Be sure you know ALL of the ramifications of being taxed as a corporation (such as the extra time and money to file a separate tax return, put yourself on payroll, file quarterly employer forms, and pay Federal Unemployment) before you make such a decision.
Thanks. Yes, I'll be paying myself with payroll starting in January. My business brings in significantly more income than a reasonable salary for my position so I'm looking forward to taking that extra income as a disbursement and avoiding FICA on that portion. I'm overestimating my salary as a precaution. I setup this new entity as an LLC to keep the paperwork a little more simple and not have to have board meetings. Thanks for your help!!
Do you need to file a 2553 EVERY year or only the first year? Thanks!
@VivoHW wrote:
Do you need to file a 2553 EVERY year or only the first year? Thanks!
You make the election once.
See https://www.irs.gov/instructions/i2553#idm139773190567344