Transition from a Sole Proprietorship to an S-Corp
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- Опубликовано: 27 авг 2024
- Marina Parkin (Koontz & Parkin, CPAs), Jo Ann Koontz and Jackie Durham (Koontz & Associates, PL) explain the why, when and how of moving from sole proprietorship to an S-Corp. Creating your legal entity and S-Corp election will have substantial tax benefits and legal protection for your business. Watch these steps you need to take to enjoy the tax benefits and avoid disappointment when issues arise for not having your S-Corp established.
2:10 Why move from Sole-Proprietorship to S-Corp?
4:47 S-Corp can save you from over payment and self employment tax issues.
7:40 When do you establish S-Corp?
10:44 Can you be an S-Corp and LLC?
14:57 Get started with S-Corp? What is and how do I form a legal entity?
20:31 Making S-Corp election for tax purposes.
28:52 Common issues you will find when you don't have structure and documents.
33:00 Opening a separate bank account for business.
35:29 Conducting business as DBA vs LLC.
40:27 Importance of record keeping systems.
51:22 Filing separate S-Corp tax return.
Need to show step by step of how to convert the single member LLC to partnership corporation. It’s more helpful
Great lesson on business thank you ladies!
Very helpful thanks so much for the video!
Thank you
You can not convert a single member LLC To partnership because you re a single member and that is considered by the IRS as a disregarded entity. The only alternative for you is to find a partner or multiple partners . As a result you will be required to file a partnership return(1065) and a k-1 is issued to each partner to file their personal tax return.
So a single person can’t go from a LLC to S-Corp?
Yes, you can from a single LLC to request an S corp tax classification meaning you are taxed a S corp (filing Form S 1120) will all the advantages (payroll for yourself), but your business entity is still a LLC.
Yes you can request a S Corp tax classification as a single LLC member meaning you are taxed as s corporation and you will file S 1120 for the business and connect your K-1 to your individual taxes return1040)