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LLC vs. S-Corp Tool

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  • ATSMAN
    replied
    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.

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  • Rapid Robert
    replied
    Originally posted by Jiggers View Post
    How is the LLC taxed? There is no IRS form for an LLC.
    "operating a business as a Subchapter S Corporation [compared to] a different entity, such as a sole proprietorship or partnership"

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  • TAXNJ
    replied
    Originally posted by ATSMAN View Post

    Form 1065 there are check boxes on top to indicate the entity type.
    Since you are mentioning forms, also see form 1120-S line G page 1, but don’t think the Original Post is about “forms”.

    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.

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  • ATSMAN
    replied
    Originally posted by Jiggers View Post
    How is the LLC taxed? There is no IRS form for an LLC.
    Form 1065 there are check boxes on top to indicate the entity type.

    Leave a comment:


  • Jiggers
    replied
    How is the LLC taxed? There is no IRS form for an LLC.

    Leave a comment:


  • Rapid Robert
    replied
    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
    ."

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  • JMGCville
    started a topic LLC vs. S-Corp Tool

    LLC vs. S-Corp Tool

    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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