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    0 Replies Latest reply on Apr 29, 2009 6:02 PM by nicksain

    what to consider as an LLC taxed as an S-corp

    nicksain Newbie
      Hi, I just started an single memeber LLC. Im thinking to the future, and it seems to me that being elected to taxed as an S corp is the best way to reduce the SE tax.

      I just have a few questions about this process:

      1. What are the considerations you have to take while being taxed as an s corp -- do you need to go through the legal formalities of corporations? My understanding is you do not since you are still legally an LLC.

      2. Aside from making myself an employee and paying my self wages from the corporation, will I receive money from the corporations income as pass through? dividends? Which of these would I avoid paying income /SE taxes on?

      3. Do you have to make any special consideratons to keep money in the LLC's account and not have it pass through to you to keep it aside for future planned expenses, emergencies, taxes for the next year, etc?

      Thanks for your help in advance in helping me understand this. I know I need to consult an accountant but before I do I want to try and understand as much as I can .