I had a specific question for those who transition from Sole Proprietor to LLC with S-Corp election mid year. For example, if I start running earn income through an S-Corp beginning 08/2023, it would seem to me that the savings on payroll taxes would be diminished since a bulk of my income was already earned as a sole proprietor prior to forming the S-Corp. Is that correct?
Is there a way to reclassify the income earned as a sole proprietor as a distribution to save on payroll taxes?
