S Corporation Tax Strategy

Pay comparable to what the business would pay someone else to do your job. The IRS can reclassify distributions as wages when salary is set too low.

Often, yes. The IRS provides relief for late S corporation elections when certain conditions are met.

Most do, but a few states tax S corporations differently or charge entity-level taxes. We include your state's treatment in the analysis.

For shareholders owning more than 2%, the company includes premiums in the owner's W-2 wages, and the owner can generally take the self-employed health insurance deduction on their personal return. The setup has to be done correctly to work.

Up to 100 shareholders, generally U.S. citizens or residents and certain trusts and estates. Nonresident aliens and most entities cannot own shares, and there can be only one class of stock.

Basis limits the losses you can deduct and the distributions you can take tax-free. Shareholders report it each year on Form 7203, so accurate tracking matters.

Yes. Distributions must be proportionate to ownership percentages, or the IRS may treat the company as having a second class of stock.

Yes, you can revoke it, but you generally cannot re-elect for five years, so it is a decision to make carefully.

No. We only recommend strategies supported by the tax code and IRS guidance, and we explain the risk and paperwork behind each one.

Yes. Tax decisions often affect investments, estate plans and legal structures, and we coordinate with your other advisors.

Every recommendation comes with an estimated tax impact, so you can see the value before you act.