LLCs electing S-Corp Status

Great for founders who want the flexibility of an LLC with the tax benefits of an S-Corporation.

What is a S-Corporation?

Tax Status

S-Corps allow companies to divide income between dividends and personal income.

Tax Savings

Dividends are taxed at a much lower rate than personal income. With a pure LLC, you are taxed only on personal income.

Difference of S-Corp vs. C-Corp

S-Corps have more restrictions on # of shareholders, who can be a shareholder, and how many types of stock you can offer.

Venture Capital/Stock Market

Most venture-backed companies/public companies are C-Corporations due to the stock restrictions of S-Corporations.

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Why combine a LLC + S-Corp?

Flexibility of a LLC

LLCs are less complicated to set up and maintain than corporations.

Tax Savings of S-Corp

LLCs can elect any tax status (sole proprietor, C-Corp, S-Corp). By electing S-Corp tax status, LLCs can split their taxable income into dividends and personal income. Dividends are taxed at a lower rate.

Federal and State Impact

Most states respect the federal S-Corp election and this leads to less state income tax for the business.

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What are the drawbacks?

Stockholder Restrictions

No foreign investors. Limit of 100 stockholders. Only 1 class of stock (rules out Venture Capital investors).

Complicated Accounting

The IRS has more rigorous auditing of S-Corp elections and requires more robust accounting.

60 Month Lock

Once you elect S-Corp status, you are locked into that election for 60 months.

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Why WizForm?

Only LLC + S-Corp Option in the Market

Our competitors support forming S-Corporations but they don't support LLCs electing S-Corp status. You should enjoy flexibility while also saving money on taxes.

Transparent

We walk you through each step of electing S-Corp status. Our job is to help you make the best decision for your business.

The Features You Need

LLC State Filing. IRS EIN. Federal and State S-Corp Filings. Registered Agent. Customized Operating Agreement.

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WizForm support

Contact support 24/7, whether you need troubleshooting or business advice.

WizForm help center

Learn more about the specifics of S-Corps and how to elect S-Corp status as an LLC.

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