The S-corp election is the biggest tax move most owners ever make. Done right, it cuts SE tax by shifting income from reasonable comp into distributions that aren't subject to it. Done wrong, it costs you more than it saves.
Most LLC owners don't need to convert. The ones who do, save real money. Here's the diagnostic we run.
Real numbers using 2026 limits: SE tax 15.3% on first $184,500, then 2.9% Medicare. Reasonable comp set at the IRS-defensible midpoint. QBI factored in. All figures pre-state-tax.
Single filer, standard deduction, no other income, 2026 numbers. State tax, your specific reasonable comp range and other deductions will move your real number.
Your numbers will differ. These examples are simplified. Your real savings depend on state tax, your reasonable comp range (IRS-defensible, not arbitrary), your existing retirement contributions, your spouse's income, and whether you have other QBI businesses in play. The Tax Analysis gives you the real number, not a rough estimate.
Most preparers do step 2 and call it done. We do all five. That's why the math actually works out the way the calculator says it will.
We run your last three returns through the Tax Analysis (paid). Output: a written plan with your specific break-even, your IRS-defensible reasonable comp range, the optimal effective date, and the year-one tax savings estimate. If the math says don't convert, we tell you that and recommend the next-best move. Free advice either way.
If you're within the 75-day window or filing for next tax year, straight Form 2553. If you missed the window, we file under Rev. Proc. 2013-30 for relief when the reason is reasonable and the filing is on time under the revenue procedure (generally within 3 years and 75 days of the intended effective date). It is not guaranteed. New York needs its own S election (Form CT-6). California follows your federal election but still taxes S-corps (Form 100S each year). Texas has no income tax, but the franchise tax report is still due.
We get you onto Gusto (our preferred: built for S-Corps) with the right pay frequency, the right W-2 setup for 2% shareholders, and the right tax-withholding schedule. We document your reasonable comp methodology (RCReports, BLS data, or peer benchmarking) so it's audit-defensible from day one.
We draft your accountable plan so you can reimburse yourself for home office, vehicle, phone, and travel tax-free. We initialize your shareholder basis tracking spreadsheet (or Form 7203 work papers) so distributions get treated correctly forever. Most preparers skip this; it's the #1 reason distributions get reclassified as wages or capital gains at audit.
Form 1120-S filed annually. Quarterly tax planning calibrated to actual income. Reasonable comp reviewed annually (the IRS doesn't expect a flat number, it expects justification for any changes). Basis updated at year-end. State franchise/PTET elections evaluated if applicable. This is the part that keeps the savings real year after year, not just year one.
Anyone who tells you S-Corp is set-and-forget hasn't done it. Here's what actually changes in your life.
From the cleanup engagements we run on people who DIY'd it or used the wrong preparer.
Pulled directly from Google. Names as Google displays them.
These guys are amazing. Super responsive. Super knowledgeable. Super effective at crafting a tax strategy that solves existing problems and proactively plans to account for expected future conditions. Best accountants/tax consultants I've used by a wide margin.
I hired Elevated Tax Strategies when I needed my tax returns fast, and they nailed it, delivering well before the ETA. Their process was super organized and easy to follow, turning a mountain of paperwork into simple, manageable steps.
I'm a small business owner who has several businesses but knows little about taxes. This can be a scary position. Elevated Tax Strategies took the time to educate me and walk me through every step. A trusted partner for small business owners.
Same pricing on the website as on the call. We tell you the number on Discovery. If we can't, we say why and quote within 24 hours.
60–90 min deep-dive on your last 3 returns + your situation. Output: written conversion plan with break-even math, reasonable comp range, Form 2553 strategy, and year-one savings estimate. Fee credits to your engagement if you proceed.
Form 2553 filing, payroll setup, accountable plan, basis tracking init, Form 1120-S + Form 1040 returns, quarterly check-ins, year-end planning. Priced by complexity (single-state vs multi-state, single-owner vs multi-owner).
Annual 1120-S + 1040, quarterly tax planning, reasonable comp review, basis updates, year-end optimization. State PTET elections evaluated annually if applicable.
If your numbers don't support conversion, we say so on the Discovery, before you pay for the Analysis. We'd rather lose a $2,595 fee than put you in an election that costs you money.
If you proceed with the conversion, the $2,595 Analysis fee is credited against your Comprehensive tier engagement. So you pay for the diagnostic OR the engagement, not both.
The person you talked to on Discovery is the person who runs your Analysis, files your Form 2553, and picks up the phone in March. No associate hand-off. No "let me check with the partner." Boutique by design.
20 minutes on Google Meet. Real conversation. By the end you'll know whether converting saves you real money, and what the engagement looks like if you decide to do it. Free advice either way.
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