Kiritsis & Associates
An LLC choosing S Corp election for tax purposes, can provide enormous employment tax savings, and reduce the risk of the business getting audited by the IRS.
Amending the operating agreement is practically a prerequisite.
Since, LLCs are designed to have flexible management with few corporate formalities, while S Corps impose strict ownership requirements, along with many formalities; a carefully drafted amendment of the LLC's operating agreement would need to be made, in order to bridge the gap, of these two regulatory frameworks.
A single member LLC can transition to S Corp tax election.
Single member LLCs are a disregarded entity, for federal tax purposes. They are not considered partnerships, like multi member LLCs, in terms of federal taxation. This is important, because partnerships do NOT qualify for S Corp tax treatment. This mean single member LLCs can elect corporate tax treatment, and then make the leap to S Corp tax election.
Depending on the jurisdiction, it may be possible for an LLC to convert into a Corporation. Doing this conversion opens the possibility for milt member LLCs to seek S Corp tax election.
If a statutory merger is not available in your jurisdiction, or just too costly for state and local tax purposes, then there may be another alternative. This involves creating a separate entity, a Corporation, and then has the LLC merge into the Corporation. Similar to a conversion, this may make multi member LLCs eligible for S Corp tax treatment. An additional option, which is too complex to discuss on this part, but is worth mentioning, is a no statutory conversion.
Law Offices of Kiritsis & Associates
Phone # 212 922 0005
Manhattan Office (Main Office):
633 Third Avenue
New York, NY 10017
Brooklyn Office (By Appointment Only):
1023 74th Street
Brooklyn, NY 11228
New Jersey Office:
7309 Ventnor Avenue
Ventnor, NJ 08406
ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.
We hope you would find this website useful with regards to finding potentially relevant information for your legal issue. The Law Offices of Kiritsis & Associates PLLC is a boutique law Firm Group headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey. We strive to provide professional legal services for individuals and various business entities. Our clientele ranges from including aspiring entrepreneurs, startups to established business organizations.
We offer flat fee prices for many of the practice areas provided listed throughout our website. For more information on the topic you may be interested, or simply to find out how our law Firm Group can help, you may click at any of our site's links.
We are available for existing and potentially new clients 7 days a week -- via online, phone and/or in person.
Intellectual Property Disclaimer(s):
The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark and other intellectual property laws. You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell or make available to the public content from the Website without the prior written approval of John Kiritsis. Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced. All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.