Evaluating S Corporation Tax Election for LLCs and Corporations

Welcome to Griffin, Your Strategic Partner in Business Tax Decisions

Is your business at a crossroads of tax election? Are you mulling over the merits of an S Corporation tax status for your LLC or Corporation? Then sharpen your pencils and dust off your calculators – you’ve found your expert entity strategist.

The S Corporation Tax Election:

Not As Daunting As It Seems (With Griffin)

Opting for S Corporation tax status, for an LLC or a Corporation, might seem as intricate as a Rubik’s cube – but not when you’ve got a seasoned advisor! At Griffin, we are your reliable guide, assisting you in understanding each nuance of S Corporation tax election with clarity and precision.

The Advantages:

Sweet Spots of S Corporation Tax Election

Pass-Through Taxation: Much like an LLC, an S Corporation enables income and losses to pass through to shareholders, allowing for potentially lower tax obligations.

No Corporate Income Tax: Unlike C Corporations, S Corporations avoid double taxation by eliminating corporate income tax. Your profits are taxed only at the individual level.

Employment Tax Savings: Shareholders/Members who are also employees might save on employment taxes, as only their salaries – not the entire business profit – are subject to these taxes.

 The Considerations:

Weighing the S Corporation Tax Status

Eligibility Restrictions: S Corporations have specific eligibility requirements, including a maximum of 100 shareholders or members, all of whom must be U.S. citizens or residents.

Limited Stock Flexibility: S Corporations can only have one class of stock when the underlying structure is a Corporation, limiting flexibility in profit and loss allocation among owners.

Increased Regulatory Oversight: The S Corporation status comes with more stringent IRS scrutiny and stricter operational processes.

S Corporation Tax Election:

Requirements for LLCs and Corporations

To be eligible for S Corporation tax status, both LLCs and corporations must meet the following requirements:

  1. Be a domestic entity.
  2. Not have more than 100 shareholders/members.
  3. Only have allowable shareholders/members, including individuals, certain trusts, and estates.
  4. Have only one class of stock.

The Griffin Difference:

Simplifying Complex Tax Decisions

At Griffin, we believe deciphering the maze of tax election shouldn’t feel like cracking a quantum physics equation. We’ve built our reputation on making business law and tax decisions comprehensible, engaging, and even slightly amusing! So leave the tax tangles to us and focus on advancing your business trajectory.

Embrace Informed Tax Choices!

Navigate Your S Corporation Tax Election with Griffin!

Are you ready to make informed, strategic tax decisions for your LLC or Corporation under the sunny California sky? Begin your journey of S Corporation tax election with Griffin today. Trust us, it’s going to be a rewarding expedition of business growth and tax optimization.

Matt is a FANTASTIC attorney and the firm is PHENOMENAL! He takes the time to explain things when I didn’t understand, conducted business in a very professional and timely manner and I have had zero issues working with him. Matt is very kind, genuine and trustworthy and I will definitely be working with him and the firm again in the future.

Dustin R.

If you need him to look over contract and you are client he will . And give you the advice you need. I already have referred my friends to him .

Randy W.

Matthew Murillo from Griffin was OUTSTANDING. I sought advice. He did not know the answer – researched it – got back to me with just what I needed. He then showed me how I could do it myself without having to be charged by his company. Genuine and authentic. I will be going back to Griffin and Matthew for any legal needs moving forward.

Eric B.

Frequently Asked Questions

Can't I Just Download Something From Google?

Oh, sure, you could always turn to our good friend Google for all your legal document needs. I mean, who needs a qualified lawyer when you can just hit up the search bar, right?

But let’s get real for a second here. Legal compliance isn’t just about slapping together a document from a generic template. It’s about making sure that document has the right language in it to protect you and your business from any legal hiccups down the road. And let’s be honest, there are a lot of not-so-great templates out there that could actually end up hurting you more than helping you.

So, yes, you could download something from Google. But do you really want to risk the future of your business on a one-size-fits-all solution? We didn’t think so. Trust us, a qualified business lawyer is worth their weight in gold when it comes to legal compliance. Don’t take our word for it though, ask any successful entrepreneur out there – they’ll tell you the same thing.

I already set-up my business, I just need an operating agreement? Can I request just that?

Ah, the classic “I’ve set up my business, what else could I possibly need?” question. Well, my dear entrepreneur, let me tell you something: having an operating agreement or bylaws is great and all, but it’s not the end-all-be-all of risk management.

Sure, you could just request an operating agreement and call it a day. But why stop there? Let’s take a closer look at your entity choice and make sure you’re not setting yourself up for disaster down the line. We’ve seen too many people make the mistake of assuming they’re protected, only to find out the hard way that their entity choice was a recipe for disaster.

So let’s be proactive and make sure we’re putting you in the best possible position for success. Sure, it may take a little extra time and effort, but trust us – it’s worth it in the long run. After all, who doesn’t love a good risk management strategy? So let’s get to work and make sure your business is built to last.

My business is not that complicated, I should be ok with one of those DIY website right?

Ah, the age-old question: should you go for the cheap, easy option, or invest in quality legal assistance? Well, my dear entrepreneur, let me tell you – you might be just fine with a DIY website. After all, why bother with pesky things like accuracy and alignment with your business goals and asset strategy? Who needs custom-drafted documents when you can just copy and paste a template that might not even be the right fit for your specific situation?

But here’s the thing: we’ve seen it all before.

The wrong operating agreement for a single owner business, misaligned business goals and asset strategy… the list goes on. And let’s not forget about the add-ons and extras that you’ll end up paying for with a DIY option. Sure, you might save a few bucks at first, but at what long-term cost?

That’s where we come in.

We offer quality legal assistance that’s tailored to your specific needs. No cookie-cutter templates here – just custom-drafted documents that actually make sense for your business. And when you factor in the potential cost savings of avoiding costly mistakes and litigation down the line, well, suddenly that DIY option doesn’t seem so appealing anymore.

So go ahead, take your chances with a DIY website. Or, you know, invest in your business and give us a call. We promise it’ll be worth it in the end.

How long do your services take?

Ah, the age-old question of how long our services take. It’s a tricky one because honestly, it depends on a lot of things. Like what we’re doing for you, how busy we are with our other clients (yes, we have other clients, shocking, I know), and of course, the ever-unpredictable processing times of government entities.

But fear not! We’re not just going to leave you hanging. We suggest you consult with us about your timeline, so we can come up with a strategy that works best for you. Because let’s be real, waiting until the last minute is not a good look for anyone.

So, savvy entrepreneur, let’s work together to create a timeline that fits your needs and keeps us both happy. And hey, if you’re feeling really brave, you can even try to throw us off our game and see if we can work some magic to get things done even faster.

Challenge accepted?

I can't find your fees anywhere. How much do you charge?

Oh, you want to know how much we charge? How quaint. Let’s just say that our fees are enough to keep our business running and our bank accounts happy. But don’t worry, we’re not here to bleed you dry – we charge what we believe is fair for the services we provide.

Now, we understand that transparency is important to you. So, after we get an idea of what you need, we’ll offer you a flat rate. That way, you’ll know exactly what you’re paying for and won’t have to worry about any surprise fees down the line. Because let’s face it, who has time to worry about long-term legal fees?

So, if you’re an entrepreneur looking for a lawyer who won’t nickel-and-dime you, we’re it.

And let’s be real, in the cutthroat world of business, you need a lawyer who can hold their own – and that’s exactly what we’ll do for you.

Join Our Business Newsletter

Subscribe for news & resources about starting, scaling and protecting your business