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I am buying a grocery store, we have an LLC but wanted to be…

Hello, I am buying...

Hello, I am buying a grocery store, we have an LLC but wanted to be taxes as s corp. How much does it cost to file that form

Accountant's Assistant: It can cost anywhere from $10 to $100, depending on the type of issue and how much of the Accountant's time your question is expected to take (how complex and lengthy an answer you require).

Thank you for the fast reply, do u have a number I can call to ask some questions?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Yes, I own more of the company for credit purposes, but my wife works the store 90% of the time. can I draw less of a wage for what I do. I do mostly inventory 4 times a month

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Answered in 20 minutes by:
3/13/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,115
Experience: Taxes, Immigration, Labor Relations
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An LLC is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner’s tax return (a disregarded entity).

Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation

https://www.irs.gov/pub/irs-pdf/f8832.pdf

If a qualifying LLC elected to be an S Corporation, it should file a Form 1120S, U.S. Income Tax Return and S corporation laws apply to the LLC. Each owner reports their pro-rata share of corporate income, credits and deductions on Schedule K-1 (Form 1120S).

With S-corportaion - you and your spouse will be both - employees and shareholders.

As an employees - you will be getting wages.

You may determine how you want to pay for services.

how to handle employment taxes and possible pitfalls, refer to Publication 3402, Tax Issues for Limited Liability Companies .

Let me know if that helps.

I will provide any clarification as needed.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,115
Experience: Taxes, Immigration, Labor Relations
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