Marina Parkin (Koontz & Parkin, CPAs), Jo Ann Koontz and Jackie Durham (Koontz & Associates, PL) explain the why, when and how of moving from sole proprietorship to an S-Corp. Creating your legal entity and S-Corp election will have substantial tax benefits and legal protection for your business. Watch these steps you need to take to enjoy the tax benefits and avoid disappointment when issues arise for not having your S-Corp established.
2:10 Why move from Sole-Proprietorship to S-Corp?
4:47 S-Corp can save you from over payment and self employment tax issues.
7:40 When do you establish S-Corp?
10:44 Can you be an S-Corp and LLC?
14:57 Get started with S-Corp? What is and how do I form a legal entity?
20:31 Making S-Corp election for tax purposes.
28:52 Common issues you will find when you don't have structure and documents.
33:00 Opening a separate bank account for business.
35:29 Conducting business as DBA vs LLC.
40:27 Importance of record keeping systems.
51:22 Filing separate S-Corp tax return.