Switching your LLC to an S-corp: election, owner salary and Form 1120-S
We help LLC owners decide whether switching to an S-corp pays off, file the election (Form 2553), document a reasonable owner salary and file Form 1120-S every year. Election — $150, salary analysis — $200, return — from $450.
What our S-corp service includes
When an S-corp pays off — and when it doesn't
An S-corp saves self-employment tax but adds costs: payroll for your salary and a separate company return.
Savings on 15.3%
You pay yourself a salary with payroll taxes and take the rest of the profit as distributions — without self-employment tax.
You need steady profit
If profit is small, payroll and return costs eat the savings. We'll calculate the point where an S-corp pays for itself.
The salary must be reasonable
The IRS checks whether an owner's salary is too low. Written support protects you from extra tax.
Not for every owner
A nonresident alien cannot be an S-corp shareholder — important if you have a partner abroad.
S-corp pricing
State return — $100, each additional K-1 — $75, extension (Form 7004) — $70, amended return — $400. Payroll for the owner's salary — from $150 a month. See all prices → · Get an estimate in 3 minutes →
What to prepare
S-corp FAQ
At what profit does an S-corp make sense?
Roughly, when profit is well above a reasonable owner's salary and the tax savings cover payroll and return costs. We'll find the exact point with your numbers.
Can I elect S-corp status after the deadline?
Often yes: the IRS allows late elections with reasonable cause. Preparing a late Form 2553 is $250.
When is Form 1120-S due?
By March 15 for the prior year. An extension (Form 7004) moves it to September 15.
Can a nonresident own an S-corp?
No. If any owner is a nonresident alien, the company cannot have S-corp status.
Let’s start with a free 15-minute interview
Send us a request — we’ll get back to you within one business day, hold a free 15-minute interview and give you a price.