LLS as Election S corp

Forum|Forum|1 year ago
September 16, 2024
4 replies
56 views

Have a new LLC with election of an S have filed 2553/ Do i need to also file a corporate return along with personal return. I materially on work 5 hours a month on the business would I be exempt for SS tax ,

Anonymous_

Level 15

Anonymous_

Level 15

Opus 17

Level 15

Every person who participates in the S-corp, even the owner, must pay themself a fair salary for the amount of work performed. That salary is reported on a W-2 and is subject to social security, medicare, and income tax withholding, along with all other employee requirements in federal and state law (unemployment insurance, workers comp, etc.). If you aren't sure what your profit will be, you could pay the salary in a lumps sum on December 31, if you want, rather than weekly or monthly, but you must take a fair salary. Only after taking a fair salary, can you distribute any other profits. You should really see a tax professional.

Mike9241

Level 15

The S-Corp return requires you to choose among buying Turbotax business to do the return yourself - full PC or MAC require windows 10, Turbotax LIve https://turbotax.intuit.com/small-business-taxes/#explorenow , or use a pro

Mike9241