An S-Corporation is a federal tax classification available to certain eligible businesses. Generally, the business's income, deductions, gains, losses, and credits pass through to its shareholders and are reported on their individual tax returns.For many small businesses, the S-Corp election changes how the business is taxed; it does not necessarily change the underlying legal entity.

No. I require the S-Corp Analysis before recommending or completing an S-Corp election.An S-Corp can be a valuable tax strategy, but it is not automatically the best choice simply because a business reaches a certain level of profit. The analysis allows me to evaluate your business, reasonable compensation, payroll and compliance costs, state tax considerations, and overall tax position before making a recommendation.Skipping that step is one of the ways business owners can end up with an entity structure that creates more taxes, penalties, interest, or administrative costs than anticipated. The IRS requires shareholder-employees who provide services to an S-Corporation to receive reasonable compensation before taking non-wage distributions, so the salary component alone can materially affect whether the election produces the expected benefit.I don't begin with the assumption that an S-Corp is the answer. If remaining under your current tax structure makes more sense, I'll tell you. If C-Corporation taxation or another structure provides a better overall tax and financial outcome, I'll recommend that instead.The goal is to choose the tax structure that makes sense for your business—not simply follow the crowd.

Owners who provide services to an S-Corporation generally must receive reasonable compensation before taking non-wage distributions.Reasonable compensation depends on the facts and circumstances, including your duties, experience, time devoted to the business, comparable compensation, and how the business generates its revenue. Our analysis includes a personalized Reasonable Compensation Report that follows the IRS methodology rather than relying on an arbitrary percentage or salary rule.

Yes. The analysis can help determine whether your S-Corp election continues to make financial sense and whether your current compensation remains appropriate as your business changes.

No. The Election & Setup Package covers the initial S-Corp analysis, election, payroll setup and training, and related implementation guidance. Annual tax preparation, ongoing payroll costs, bookkeeping, and other recurring services are separate.