@kizfaka wrote:
I'm sole proprietor now and just created an LLC. I have not yet submitted for S-Corp election.
You JUST created the LLC? You can not file a late election for before the LLC existed. And you can't file the late election unless you meet the other requirements, which you don't seem to meet them (such as "reasonable cause" for not filing the election on time).
You REALLY should sit down with a GOOD tax professional that is experienced with analyzing the pros and cons of various ways to be taxed. Many people like the idea of a S-corporation, but in MANY cases it is NOT in their best interest and they don't realize everything that is required.
Besides the extra work and expense of a corporation, one thing that most people (even many tax professionals) neglect to consider is that paying less Social Security Tax means that your eventual Social Security (or Disability) benefits will usually be reduced. So you need to factor that into the decision.
