Hi Juan - Is it the investment income limit that disqualifies you? (the dividend portion of your income, that's not salary). I'm guessing that's it
If that's the case, then you may want to revoke the S-corp status and simply have self employment income (which is not considered investment income)
here's an excellent article on Chron.com about the steps needed to revoke S-Corp status and return to LLC ... which would simply general self employment income, rather than investment (dividend, k-1) income
Vote to terminate the S corporation election. Call a meeting of all of the owners, known as members, of the LLC. Subchapter S of the Internal Revenue Code requires the consent of over 50 percent of the company's owners to terminate an election. Record the vote in the minutes of the meeting and file the minutes in the LLC's records book. Have the secretary draft a resolution empowering a managing member to carry out the decision to terminate.
Prepare a statement of consent to terminate the election. Have the majority of owners who voted for the termination sign the consent form. The format of the consent form can mirror the consent statements that were included with the original S corporation election on IRS Form 2553, Election by a Small Business Corporation. Basically, the consent form should contain language that expresses the desire to terminate, the effective date of the termination, a list of the owners who consented, their Social Security numbers and their percentage ownership interest that proves a majority decision. The form must be signed by the owners, and their signatures must be notarized.
Prepare a letter to the IRS, terminating the election. There is no official form to terminate an S corporation election. The letter should be titled' "Revocation of S Corporation Status" and include a statement that the company is terminating the election pursuant to IRC Section 1362(a). It should also include the company's Employer Identification Number and the effective date of the termination. The managing member who signs the company's federal income tax return should be the one who signs this letter.
Send the termination letter and the statement of consent to the IRS. Send the documents to the same IRS service center that processed the original election. Refer to the letter the company received from the IRS, authorizing the election, when you filed Form 2553. This letter should be in your company's records book. Address the termination letter to the same service center.
So, after deducting salaries and other expenses on your Schedule C (which is the form you would use to file taxes as a single member LLC) you would be left with a self employment income well under the limit for the earned income credit. and NO dividend ("investment") income which I think is the problem here.
Let me know if I've understood your questions correctly, or if you have other questions
there are no members i am the only one.
but if i give my self a 1099 then it records double one from the co n another from myself to myself
oh ok so i must terminate the s-corp and then report on the 1140 with schedule c
ok i got it thank you for the help. is there anything else i need to do here before terminating this session?