Episode 65. Is It Too Late To Elect S Corporation and Pay Myself Salary?

Interested in Tax Strategy for your Business? Send us a message with your email address and we’ll help you get started!Is it too late to elect S corporation status and process payroll for the year? Short answer: no.In this podcast, I break down how a late S corporation election works, why the March 15 deadline isn't always the final deadline, and how you may still be able to catch up on payroll.Many business owners hear, "You have 75 days" or "You have until March 15," and assume they missed their chance. That's not always true. You may be able to file Form 2553 with a late election and explain why the election was not made on time.Here's what I cover:▶️ How to make a late S corporation election after the March 15 deadline and how the election can apply back to January 1▶️ How to catch up on payroll at year-end even if you haven't run payroll all year — including using a paper check against distributions you already took from the business▶️ Why your reasonable compensation may not be prorated just because you elected S corporation status late — if your reasonable compensation is $60,000 for the year, you may still need to pay the full $60,000▶️ How year-end payroll can help with retirement contributions such as a SEP IRA or Solo 401(k), including employee deferrals on a lump-sum W-2 paycheck▶️ How S corporation status may help with the QBI deduction if you are a profitable business owner who could otherwise lose part of the deduction based on your income and business type▶️ How an S corporation may help with the PTET strategy in states that do not provide the same treatment for an LLCIf you're a profitable business owner still operating as a single-member LLC or sole proprietor and you're heading toward year-end, this may be a tax strategy worth looking into.Before making an S corporation election or changing your payroll, talk with your Tax Advisor to make sure this strategy fits your situation.🆓  Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know:   https://7taxwriteoffs.com/?el=podcast&htrafficsource=buzzsprout*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.