Comments on: Ask the taxgirl: Reporting for Single Member LLCs and S corporations http://www.taxgirl.com/ask-the-taxgirl-reporting-for-single-member-llcs-and-s-corporations/ Paying taxes is painful... but reading about them shouldn't be. Sun, 12 Feb 2012 17:55:29 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Kelly http://www.taxgirl.com/ask-the-taxgirl-reporting-for-single-member-llcs-and-s-corporations/comment-page-1/#comment-9842 Kelly Wed, 25 Mar 2009 19:21:44 +0000 http://www.taxgirl.com/?p=3011#comment-9842 I'm fairly conservative on the S election front... It would have to be A LOT more IMO to make a real difference - esp if taxpayer has health insurance needs, Social Security issues or would require significant assistance with tax preparation. The incentive to be an S corporation, I'm sure, was related to SE tax. The "savings" on those can often be offset by other costs - the point relating to local and state taxes was well taken, for example. I just ran the numbers in Philly for a taxpayer who was grossing over $100k and the savings, with health care and other issues taken into consideration - was less than $2k. That doesn't include the fees to file the additional returns (yes, plural because of state and local). If the numbers come out relatively even, I think the less burdensome approach is best for most taxpayers. I ran those same numbers for a taxpayer grossing over $250k and the story was very different. I’m fairly conservative on the S election front… It would have to be A LOT more IMO to make a real difference – esp if taxpayer has health insurance needs, Social Security issues or would require significant assistance with tax preparation. The incentive to be an S corporation, I’m sure, was related to SE tax. The “savings” on those can often be offset by other costs – the point relating to local and state taxes was well taken, for example.

I just ran the numbers in Philly for a taxpayer who was grossing over $100k and the savings, with health care and other issues taken into consideration – was less than $2k. That doesn’t include the fees to file the additional returns (yes, plural because of state and local). If the numbers come out relatively even, I think the less burdensome approach is best for most taxpayers.

I ran those same numbers for a taxpayer grossing over $250k and the story was very different.

]]> By: Mary Kay Foss http://www.taxgirl.com/ask-the-taxgirl-reporting-for-single-member-llcs-and-s-corporations/comment-page-1/#comment-9840 Mary Kay Foss Wed, 25 Mar 2009 17:23:55 +0000 http://www.taxgirl.com/?p=3011#comment-9840 The 2008 S-Corp return was due March 16, 2009. As pointed out by Vinny the S-Corp election form was due in 2008. The IRS has been allowing Form 2553 to be filed with the first S-Corp return if it wasn't filed previously and there's a good reason. If no extension was filed for the corporation, she should file a return as soon as possible. The 2008 S-Corp return was due March 16, 2009. As pointed out by Vinny the S-Corp election form was due in 2008. The IRS has been allowing Form 2553 to be filed with the first S-Corp return if it wasn’t filed previously and there’s a good reason.

If no extension was filed for the corporation, she should file a return as soon as possible.

]]> By: Bob Mc http://www.taxgirl.com/ask-the-taxgirl-reporting-for-single-member-llcs-and-s-corporations/comment-page-1/#comment-9837 Bob Mc Wed, 25 Mar 2009 15:06:26 +0000 http://www.taxgirl.com/?p=3011#comment-9837 Would your advise be any different if he was making $54,67 0? I'm sure TP has aspirations of more income in the non-"bad years". Would your advise be any different if he was making $54,67 0? I’m sure TP has aspirations of more income in the non-”bad years”.

]]> By: Vinny http://www.taxgirl.com/ask-the-taxgirl-reporting-for-single-member-llcs-and-s-corporations/comment-page-1/#comment-9835 Vinny Wed, 25 Mar 2009 14:07:54 +0000 http://www.taxgirl.com/?p=3011#comment-9835 And be sure that the 2553 (S-Corp election) was filed in addition to the 8832 (check the box) form. I think both have to be filed within 75 days of formation if you want S corp and corp status retroactive to day 1. And be sure that the 2553 (S-Corp election) was filed in addition to the 8832 (check the box) form. I think both have to be filed within 75 days of formation if you want S corp and corp status retroactive to day 1.

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-reporting-for-single-member-llcs-and-s-corporations/comment-page-1/#comment-9823 Kelly Tue, 24 Mar 2009 23:26:25 +0000 http://www.taxgirl.com/?p=3011#comment-9823 Absolutely, a great point! In fact, the state and local treatment of both LLCs and S corporations will vary. Absolutely, a great point! In fact, the state and local treatment of both LLCs and S corporations will vary.

]]> By: JN http://www.taxgirl.com/ask-the-taxgirl-reporting-for-single-member-llcs-and-s-corporations/comment-page-1/#comment-9821 JN Tue, 24 Mar 2009 21:41:50 +0000 http://www.taxgirl.com/?p=3011#comment-9821 Also, not sure about the resident of the taxpayer, but some states and municipalities (hello New York City) tax S corps at the entity level, making them inefficient in at least that respect (NYC also imposes a tax on SMLLCs, but it's less than the tax on S corps). Also, not sure about the resident of the taxpayer, but some states and municipalities (hello New York City) tax S corps at the entity level, making them inefficient in at least that respect (NYC also imposes a tax on SMLLCs, but it’s less than the tax on S corps).

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