S-Corporation Tax Services for Growing Businesses

Expert Form 1120S preparation, reasonable salary optimization, and strategic tax planning for S-Corps nationwide. Save thousands with proper S-Corp tax strategy.

S-Corporation Tax Challenges We Solve

S-Corp taxation offers significant savings but requires careful compliance. We handle the complexities while you focus on growth.

Common S-Corp Tax Pain Points

  • Reasonable Salary Compliance
    IRS scrutiny on officer compensation can trigger costly audits and penalties
  • Basis Tracking Complexity
    Shareholder basis affects deductible losses and distribution taxation
  • Payroll Tax Optimization
    Balancing salary vs. distributions for maximum tax savings
  • State Tax Complications
    Multi-state S-Corps face varying recognition and filing requirements

The SDO CPA S-Corp Advantage

With Big Four expertise and 800+ S-Corps served, we deliver sophisticated tax strategies that maximize your savings while ensuring complete compliance.

  • Reasonable Salary Analysis: Data-driven compensation strategies that withstand IRS scrutiny
  • Tax Savings Optimization: Average $15,000+ annual savings through proper structuring
  • Proactive Compliance: Stay ahead of deadlines and requirements
  • Year-Round Support: Not just at tax time - continuous optimization

Why Choose S-Corporation Status?

See how S-Corp taxation compares to other entity structures

Tax Feature Sole Prop/LLC S-Corporation C-Corporation
Self-Employment Tax On 100% of profit Only on salary N/A
Tax Rate Personal rates Personal rates 21% + personal on dividends
QBI Deduction Available Available Not eligible
Health Insurance Self-employed deduction W-2 wages + deduction Corporate deduction
Retirement Plans SEP/Solo 401(k) 401(k) with match 401(k) with match
Audit Risk Higher Lower Moderate

Comprehensive S-Corporation Tax Services

Everything your S-Corp needs for tax compliance and optimization

Tax Compliance Services

Complete S-Corp tax compliance with high accuracy

  • Form 1120S preparation and filing
  • Schedule K-1 distribution to shareholders
  • State S-Corp returns (all 50 states)
  • Payroll tax compliance (941, 940, W-2s)
  • 1099 preparation and filing
Reasonable Salary Planning

IRS-compliant compensation strategies that maximize savings

  • Industry-specific salary analysis
  • Documentation for IRS support
  • Salary vs. distribution optimization
  • Quarterly payroll planning
  • Officer compensation studies
Tax Planning & Strategy

Proactive strategies to minimize your tax burden

  • QBI deduction maximization
  • Year-end tax planning
  • Retirement plan optimization
  • Health insurance strategies
  • Equipment purchase timing (Section 179)
S-Corp Election Services

Seamless transition to S-Corp status

  • LLC to S-Corp conversion analysis
  • Form 2553 preparation and filing
  • Late election relief (Rev Proc 2013-30)
  • State S-election filings
  • Basis calculation at conversion
Shareholder Services

Support for all shareholder tax needs

  • Shareholder basis tracking
  • AAA account maintenance
  • Distribution planning
  • Stock transfer documentation
  • Buy-sell agreement tax planning
Multi-State Compliance

Navigate complex multi-state requirements

  • State S-Corp recognition analysis
  • Composite return preparation
  • Nexus determination
  • Apportionment calculations
  • State withholding compliance

💰 S-Corp Tax Savings Calculator

Most businesses save $10,000-$50,000 annually with proper S-Corp election and planning

Example: $150,000 net income = $15,000+ in tax savings per year

S-Corporation Tax FAQs

Common questions about S-Corp taxation and our services

When should I elect S-Corp status?

Generally, when your net business income exceeds $60,000-$80,000 annually, S-Corp election becomes beneficial. The exact threshold depends on your specific situation. We provide a free analysis to determine your optimal timing.

What is reasonable salary for S-Corp owners?

Reasonable salary varies by industry, experience, and duties performed. Generally, it should reflect what you'd pay someone else to do your job. We use IRS-approved methods to determine and document your reasonable salary.

Can I elect S-Corp status mid-year?

Yes, but it complicates your tax filings. You'll need to file two returns for the year - one as an LLC/sole prop and one as an S-Corp. We typically recommend January 1st elections for simplicity.

What's the deadline for S-Corp election?

Form 2553 must be filed by March 15th to be effective for the current tax year. However, late election relief is available in many cases. We can help with both timely and late elections.

Do all states recognize S-Corp elections?

Most states recognize federal S-Corp elections, but some like California, New York, and New Jersey have additional requirements or taxes. We handle multi-state compliance for S-Corps operating nationwide.

How much can I save with S-Corp status?

Savings typically range from $5,000 to $50,000+ annually, depending on income level. The primary savings come from reduced self-employment tax. Our free analysis calculates your specific savings potential.