Thank you for the reply. I am still very confused and unsure how to file taxes this year. We will be an S-Corp, which you said the S-Corp does not file taxes. But, we will still be issued K-1's for 2024? Why? I thought that was for partnerships only. Husband and wife are the only 2 shareholders and the only 2 employees. Same 2 people. The amount in the W-2 won't be the same amount in the K-1, correct? Example: Let's say 2024 the business made $100k. $50k was disbursed as W-2 earnings ($25k to husband and $25k to wife) and the other $50k was before the S-Corp so they will be K-1 shareholder disbursements? Then, for 2025 we will be an S-Corp the whole time so the full $100k would be W-2 ($50k to husband and $50k to wife) with $0 in the K-1s?
