In order to make an entity declaration as an S-Corp you'll need to file an entity election with an effective date no earlier than 75 days prior to making the election or 12...There is a 60-month limitation rule, so once you make the election, you generally have to stick with it for five years.
An S-corp election can help reduce employment taxes once you are making enough to be considered a fair salary. After that point, the money can be taken out as a distribution. Because S-corp shareholders are taxed on income at the time it is reported by the S-corp, they build basis. When a distribution is taken, the money isn't taxable as long as there is basis. This article explains it quite well.
A single member LLC is allowed basically the same business deductions as any other business. Anything that is considered "ordinary and necessary". Things like supplies, office expenses, insurance, advertising, vehicle costs, travel, legal & professional fees. Here are a couple of good resources regarding business deductions:
TurboTax Tax Moves and This IRS publication has a very comprehensive list.
Hope this helps!
Cindy
**Please say "Thanks" by clicking the thumbs up icon in a post
***Mark the post that answers your question by clicking on the "Mark as Best Answer"
