In this episode of the Main Street Business Podcast, Mark J. Kohler and Mat Sorensen share powerful insights on why converting your LLC to an S corporation is a game-changer for tax savings. They discuss the crucial tax advantages, the importance of structuring income properly, and walk you through the filing process. Find out how you could potentially save $7,000 or more with this strategic business move.

Here are some of the highlights:

• Mark emphasizes how LLCs do not save taxes and explains the process of turning an LLC into an S corp.
• Discussion on the difference in tax rates between LLCs and S corps, with S corps allowing for lower self-employment tax.
• Mat and Mark cover the importance of allocating income to FICA wages and the potential savings.
• Mark outlines the three-step process for making a late S corporation election, including filling out form 2553 and referencing revenue procedure 2013-30.
• Mark explains the workaround for the first year, including claiming compensation on both the 1120s and Schedule C.
• The benefits of the S corporation strategy for business owners and the potential annual savings.
• Need for proper health insurance premium write-offs and the overall benefits of the S corporation strategy.
• Why S Corps should avoid taking the Qualified Business Income (QBI) deduction when filing taxes.

• Grab my FREE Ultimate Tax Strategy Guide HERE!
• You don't want to miss this! Secure your tickets for the most significant business, tax & legal event of the year: Main Street 360
• Looking to connect with a rock star law firm? KKOS is only a click away!
• Are you ready to get certified in EVERY strategy I teach? Start your journey with a FREE 15-minute discovery call to explore the Main Street Tax Pro Certification.
• Check out our YOUTUBE Channel Here: https://www.youtube.com/markjkohler
• Craving more content? Check out my Instagram!