Every dollar of LLC profit gets hit with 15.3% self-employment tax — both the employee and employer share. S-Corp election splits that. Most business owners who qualify never make the switch because of state paperwork confusion, payroll setup overwhelm, and missed deadlines.
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The S-Corp election process is straightforward in theory. In practice it's a bureaucratic maze — and one missed step means you're back to paying full self-employment tax for another full year.
LLC owners pay both the employee and employer share of self-employment tax. On $100K profit, that's $15,300 straight to the IRS — before income tax.
Every state has different rules, fees, deadlines, and forms. What works in Texas fails in California. The IRS forms are just the start.
S-Corp requires running payroll for yourself — state tax accounts, workers comp, quarterly filings. Most people have no idea where to begin.
IRS Form 2553 has strict deadlines. Miss it and you're paying full SE tax for another year. Late relief elections exist, but they're not guaranteed.
New business owners often don't know what accounts they need, what they already have, or which registrations are required for their state.
"Reasonable compensation" is the IRS's main lever against S-Corps. Set your salary too low and you're a target. Most owners guess and hope.
Here's a real example. $120,000 net profit. $60,000 reasonable salary. The rest passes through as a distribution — no SE tax on distributions.
Federal S-Corp election is just Form 2553. Every state layered on their own registration requirements, franchise taxes, and deadlines. Select your state to see what applies to you.
State-specific guides are included in every package. Select yours to see key requirements.
Start Your ConversionWhether you want the roadmap to DIY it, someone to handle the bureaucracy for you, or complete first-year peace of mind — we have a package for every business owner.
Here's what happens after you pick a package — depending on which tier you choose, we either guide you through each step or handle it all ourselves.
Choose the tier that fits your situation. Secure checkout via Stripe. You'll get immediate access to your package or onboarding form.
A short intake form collects your EIN, formation date, state of registration, and ownership details — everything needed to file accurately.
For Tier 1, you get the templates and instructions. For Tiers 2 and 3, we prepare, review, and submit everything on your behalf.
You receive IRS confirmation of your S-Corp election. Tier 3 clients get continued quarterly support through their first full year.
Every filing reviewed for accuracy before submission. No shortcuts that create problems later.
All 50 states covered. We know the quirks of CA, NY, NJ, and every other state's requirements.
Filings prepared within 3 business days of receiving your information. Deadlines are respected.
Payments processed via Stripe. Your financial information never touches our servers.
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Cain Family InsuranceBusiness compliance, insurance, and tax services for small business owners
The S-Corp election window is time-sensitive. If you're eligible and profitable, the math is straightforward — but the process isn't. Pick a package and stop leaving money on the table.
Everything you need to understand your S-Corp before you pay anyone a dollar.