#559 Retroactive S-Election for 2024: Why & How — Main Street Business

In this episode of the Main Street Business Podcast, Mark J. Kohler and Mat Sorensen share powerful insights on why converting your LLC to an S corporation is a game-changer for tax savings. They discuss the crucial tax advantages, the importance of structuring income properly, and walk you through the filing process. Find out how you could potentially save $7,000 or more with this strategic business move.

Here are some of the highlights:

Mark emphasizes how LLCs do not save taxes and explains the process of turning an LLC into an S corp.
Discussion on the difference in tax rates between LLCs and S corps, with S corps allowing for lower self-employment tax.
Mat and Mark cover the importance of allocating income to FICA wages and the potential savings.
Mark outlines the three-step process for making a late S corporation election, including filling out form 2553 and referencing revenue procedure 2013-30.
Mark explains the workaround for the first year, including claiming compensation on both the 1120s and Schedule C.
The benefits of the S corporation strategy for business owners and the potential annual savings.
Need for proper health insurance premium write-offs and the overall benefits of the S corporation strategy.
Why S Corps should avoid taking the Qualified Business Income (QBI) deduction when filing taxes.

Ready to Take the Next Step?

Work With Mat & Mark’s Law Firm
Get strategic legal guidance for your business, taxes, asset protection, and estate planning with KKOS Lawyers.
[Book a Call with KKOS Lawyers]

Take Control of Your Retirement
Want to invest your IRA or 401(k) in assets you actually understand? Check out our self-directed trust company Directed IRA.
[Learn More About Directed IRA]

Free Resources

Mat Sorensen’s Optimal Order of Investing Guide
Learn how to prioritize where your money should go and build a smarter investing strategy.
[Download the Free Guide]

Mark J. Kohler’s 30-Point Tax Guide
Discover practical tax strategies and planning opportunities every business owner and investor should know.
[Download the Free Guide]

Get More From Mat & Mark

Watch on YouTube
Tax strategies, business planning, investing, asset protection, and more.
[Visit the YouTube Channel...