Business owners who run a Limited Liability Company (LLC) can reduce the tax they pay to the IRS by choosing to be treated as an S Corporation. Known as an “S Corporation Election,” this changes the tax status of your business. It makes you a different type of “tax entity” meaning you need to report on, file, and pay your taxes in a different way. We’ll explain the changes you need to make to stay compliant with IRS rules and the tax code, so you can avoid unpleasant penalties.
Chances are, you weren’t home when the post office attempted to deliver a certified or letter from the IRS. Chances are, a pink slip was left for you in your mailbox. You might be holding that pink slip in your hand right now. It might be a little sweaty. You might be wondering — Is this bad? Is this good? Is this no big deal?
You might question – Am I going to be arrested? Should I pick up the letter? What happens if I do? What happens if I don’t?
You probably are very concerned – so read on as we answer as many great questions we can.