2

I have a very simple small business that has very straight forward taxes. I am the only employee and I don't have a lot of complicated deductions / credits. Am not married and don't have kids. It is my only source of income.

I wanted to file my taxes as an s-corp so as to reduce my small business tax. Is this manageable for me to do on my own with Turbo Tax Business? Or should I go with an accountant?

Improve this question
7
  • 2
    Corporations need to have a board, board meetings, records of the meetings, etc. Not requiring these things is one of the major benefits of an LLC. What do you think the S-Corp arrangement will give you that an LLC won't from a taxation standpoint?
    – quid
    Commented Apr 20, 2016 at 19:58
  • 1
    @quid I would stay an LLC, but only file as an s-corp which is allowed. Filling as an s-corp allows you to pay yourself a "reasonable" salary and the rest of income can be counted as a dividend. You only have to pay small business tax on the salary part of it, so it lessens it.
    – Ser Pounce
    Commented Apr 20, 2016 at 20:00
  • 1
    @quid there is no board requirement. It will essentially run exactly the same as an LLC, just I can file my taxes as an s corp.
    – Ser Pounce
    Commented Apr 20, 2016 at 21:16
  • 1
    @keshlam No I'm asking how hard is it to do these taxes on my own.
    – Ser Pounce
    Commented Apr 20, 2016 at 22:26
  • 1
    Sorry, misread. Past discussion doesnt seen to answer this: money.stackexchange.com/questions/7899/…, money.stackexchange.com/questions/13800/file-llc-as-s-corp, money.stackexchange.com/questions/43279/…
    – keshlam
    Commented Apr 20, 2016 at 22:57

1 Answer 1

Reset to default
1

Yes, you can make the election to file your LLC as an S-Corp, and Turbo Tax Business can help you with the S-Corp business return. You need to make sure you're set up correctly and there are a lot of things to be aware of. For example, the whole "reasonable salary" thing is a can of worms.

So while the answer to your question is "yes, it's manageable, you can do it on your own," it might be worthwhile to have a professional help you the first year, make sure it's set up right, and then you can do it on your own in subsequent years.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .