I have a client who has an LLC. They are considering making an S-Corp election. Does The Tax Book have a tool or worksheet that helps calculate which is better given a net income range?
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I can't answer about TheTaxBook, but I will add that the Planner CS product from Thomson-Reuters (part of the UltraTax product family) does have such a tool. The documentation includes video how-to's.
Here is what the web site says:
"The S Corp Comparison plan is a one-year, two-alternative plan that you can use to compare the tax results of operating a business as a Subchapter S Corporation in one column, and as a different entity, such as a sole proprietorship or partnership, in the other column. You’ll view the results of the analysis on the S Corp Comparison tab, which highlights the specific differences pertaining to each entity.
You can also easily alternate between an S Corp Comparison plan and a regular tax plan by marking or clearing the S Corp Comparison checkbox in the Plan Information dialog. When you convert one plan to the other, your data and tax calculations remain the same—the S Corp Comparison plan simply presents the results in a different way."
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard -
How is the LLC taxed? There is no IRS form for an LLC.Jiggers, EAComment
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Form 1065 there are check boxes on top to indicate the entity type.Originally posted by Jiggers View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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Since you are mentioning forms, also see form 1120-S line G page 1, but don’t think the Original Post is about “forms”.Originally posted by ATSMAN View Post
On Form 1120-S line G):
(G. Is the corporation electing to be an S corporation beginning with this tax year? Yes. No. If “Yes,” attach Form 2553 if not already filed.)
Would recommend looking at The Tax Book chapter on S Corps. regarding advantages/disadvantages.Last edited by TAXNJ; 12-16-2020, 04:49 PM.Always cite your source for support to defend your opinionComment
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"operating a business as a Subchapter S Corporation [compared to] a different entity, such as a sole proprietorship or partnership"Originally posted by Jiggers View Post"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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I was simply answering the question by the poster "How is the LLC taxed? There is no IRS form for an LLC". Specific to which tax form to file a typical LLC return. Yes if it "elects" to be taxed as a S-Corp then it is 1120-S.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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