πŸ’° When NOT To Have Your LLC Taxed As An S-Corp

When NOT to have your LLC taxed as an S-Corp

1. How Much Profit Should You Be Earning Before the S-Corp Election Makes Financial Sense:

Detailed video discussing when an S-Corp makes financial sense:

When does an S-Corp make financial sense for your business?

2. How Large Amounts of W-2 Income Can Negate the Tax Savings of An S-Corp:

Detailed video discussing W-2 and small business income:

What happens when you have a business and a W-2 job? Does S-Corp still make sense?

3. What Happens When Your State Doesn’t Recognize the Federal S-Corp:

Minnesota recognizes the Federal S-Corp: Link

If you filed federal Form 2553 with the Internal Revenue Service (IRS) to elect to become an S corporation, you do not need to file a similar form with Minnesota. Minnesota automatically accepts your S corporation status once approved by the IRS.

Detailed video on cities and states that tax S-Corps:

Does your state or city tax S-Corps? If so, does it still make sense?

4. Why Passive Income, Such As Buy and Hold Rental Real Estate, Should Not Be Taxed As an S-Corp:

Detailed video on how passive income is taxed:

Why rental property income should not be in an S-Corp