#559 Retroactive S-Election for 2024: Why & How

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.Grab my eBook 30 Unique Strategies Every Business Owner Should Know! You don't want to miss this! Secure your tickets for the #1 Event For  Small Business Owners On Main Street America:  Main Street 360 Looking to connect with a rock star law firm? KKOS is only a click away! Are you ready to get certified in EVERY strategy I teach? Start your journey with a FREE 15-minute discovery call to explore the Main Street Tax Pro Certification. Check out our YOUTUBE Channel Here: https://www.youtube.com/markjkohlerCraving more content? Check out my Instagram!