LLC vs. S-Corp Tool

[ATSMAN]

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.

[Rapid Robert]

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"

[TAXNJ]

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.

[ATSMAN]

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.

[Jiggers]

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

[Rapid Robert]

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."

http://cs.thomsonreuters.com/ua/planner/cs_us_en/Entr/creating_an_s_corp_comparison_plan.htm

[JMGCville]

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?