I have a very specific question. I need to create some kind of corporate structure for my one-person enterprise, hopefully one that will permit me to save on taxes. I am leaning toward an LLC taxed as an S corp.I know this would make some s corp requirements kick in, but I am unsure which ones. I know that one of the onerous elements of an s corp is the need for an actual payroll and sending the IRS and the state tax payments quarterly. So here is my question. If I create an LLC to be taxed as an s corp, will that have to comply with the payroll requirements associated with the s corp? Yes, at some point I will talk to an accountant, but I would like to get as much information as I can before doing so.
This is really wrong place to ask that kind of question. There are a lot of different factors to consider that may or may not make that the right entity for you. You should look into hiring a CPA to handle your taxes and advise you regarding the best entity to use for your situation.
I’m dealing with this also. The CPA I had initially wasn’t helpful in discussing anything with me. I was just a number, and money in his pocket. He did tell me I needed to pay myself since I’m filing as an S Corp for my LLC, but never said much more. The first couple of years, it meant nothing to me since I reinvested everything. Last year after being so overcharged for his work and lack of communication, I found a CPA I really like that was suggested by other Land Investors. He informed me also that I needed to pay myself, but I thought I could do so without a payroll service. So, I started sending money from my business to me personally. But that’s not the way it works. LOL. Thankfully this CPA explained in detail why I need a Payroll for myself which is actually a benefit and not a detriment when it comes to filing. Now I understand. I put myself in jeopardy by not having that before. Huge red flag to the IRS. Scary to think what could have happened. So, there’s a lot of Payroll companies who will work with a single owner LLC. Just Google, research, check reviews, etc., to find what’s right for you.
2 Likes
Thank you so much, Patricia. That is exactly what I needed to hear!