04-02-2004, 11:19 PM
| |||
| |||
 Re: LLC to S-Corp Conversion Necessary? "Harlan Lunsford" <lunstax[at]bellsouth.net> wrote: - quote - > Kevin Davis wrote:
An LLC that is an unicorporated entity can have retirement> > I have an LLC, and have been advised that for tax purposes, > > I'm better off changing the entity to an S-Corp to minimize > > tax liabilities (specifically the SE Tax) through > > distributions, in addition, there are some retirement > > contribution benefits (matching via the corp) that can be > > had supposedly > Converting to an S corp also involves setting a reasonable > salary for yourself, with it's attendent payroll reporting > responsibilities. However your'e right, if you DO get a > salary, a retirement plan is possible. plans. They are generally Keogh's and yes they are technically done at the 1040 level. So, I don't readily see the benefit of the corporate form here, unless you can somehow justify that the entity's earnings exceed a reasonable salary and the amount is material. -- <<< Benjamin Yazersky CPA [NJ & NY] > > << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
|
#-1
04-01-2004, 02:07 PM
| |||
| |||
| Re: LLC to S-Corp Conversion Necessary? Kevin Davis wrote: - quote - > I have an LLC, and have been advised that for tax purposes,
Converting to an S corp also involves setting a reasonable> I'm better off changing the entity to an S-Corp to minimize > tax liabilities (specifically the SE Tax) through > distributions, in addition, there are some retirement > contribution benefits (matching via the corp) that can be > had supposedly salary for yourself, with it's attendent payroll reporting responsibilities. However your'e right, if you DO get a salary, a retirement plan is possible. - quote - > Do you guys think this is a wise choice? I've also heard you
Yes. And there IS a form: 8332. 83xx. something like> can just elect to be taxed as an s-corp as an LLC through > the IRS. that. something about Entity choice. Be sure you get it right,though, and file it timely, and dot your t's and cross your eyes. i's..... cheer$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| conversion, llc, scorp |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| Can an S-Corp own an S-Corp? Trip Ives: I have a quick question here. Can an S-Corp own another S-Corp (part or whole)? Why do I ask? I own one S-Corp and a business colleague owns... | Taxes | 3 | 02-12-2004 08:48 AM | |
| going from C to S corp llama: I have been in business for about a year. I just incorporated a C corp and elected to be an S but that won't go into effect until next tax year. ... | Taxes | 1 | 10-30-2003 03:40 PM | |
| suspended k-1 loss, s corp goes to c corp BM30003700: a client of mine revoked s corp status prior to march 15, 2003, so became c corp effective 1/1/03. at 12/31/02, had approximately zero basis in s... | Taxes | 1 | 10-11-2003 06:43 AM | |
| Tax motivations to switch to an S-Corp from a C-Corp... Tripp Knightly: I realize the decision to choose / switch S over C is more than just current-year tax liability & avoiding double tax, but I want to understand the... | Taxes | 3 | 07-30-2003 07:38 PM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
