An S-Corp is a tax classification status for your business. Business owners can choose, or ‘elect’, to have their business taxed as an S Corporation.
Note: an S-Corp is not a standalone business entity like an LLC, Partnership, or Corporation. You cannot form an S-Corp. An S-Corp is a tax classification applied to existing entities.
To be taxed as an S Corporation, businesses must file Form 2553 with the IRS. Some State Agencies also require additional filing.
While this sounds complicated, it doesn’t have to be. You can complete the entire S-Corp election process through this site in 5 minutes for less.
The primary benefit of being taxed as an S-Corp is saving money on self-employment taxes. Self-employment taxes, which consist of Social Security and Medicare, total 15.3% of your net income.
Once you elect as an S-Corp, you become an “employee-owner” – owning both your company, and your work for the company. This income splitting means that you only have to pay the 15.3% self-employment tax on your salary. Any additional profit left in the business (referred to as “distributions”) is not subject to self-employment taxes.
As an employee-owner, you have to pay yourself a “reasonable salary”. The IRS has no concrete definition of this, but you should try to base your salary on your position, experience, and what you would earn doing the same job at a comparable company.
According to the IRS, a corporation or LLC must file an S-Corp election within 75 days of formation for the election to take effect in the first tax year.
However, if you missed the deadline, we can still file the S-Corp election and get it approved. It’s what we do – more than 40% of our clients came to us for help after their companies missed the deadline. Our experts will review your case and file Form 2553 and accompanying documents with the IRS and State Agency.
Newly formed entities should file their S-Corp election within 75 days of incorporation.
However, you can still file an S-Corp election within 3 years and 75 days of the intended date of filing. You must provide the reasons for your late filing. In situations like this, our experts will assist you in getting your S-Corp election approved.
Yes – our platform is the only available solution to file your S-Corp election online. Other providers still rely on pen and paper, causing significant delays in your filing.
Our flat-rate fee is $95. There are no contracts or hidden fees – all you have to do is answer 4-5 questions about your company, and we’ll handle everything else
We review and file your paperwork in one business day. However, the IRS and State Agency may take some time to process your request. In our experience, it usually takes one to six weeks for your request to be processed.
Our team of experts help you avoid any errors and delays in order to have your request processed as quickly as possible.
Address 4800 W 34th St, Houston, TX 77092
Phone (888) 444-5260
Let our experts e-file your S-Corp Election with the IRS and state agencies today.