It never fails that I get a new tax client in late fall who hasn’t been paying attention to his business. Or rather, he’s been so busy with his business that he didn’t pat attention to his growing tax issues.
If you have a business that is taxed as a Sole Proprietorship either because you don’t have a business structure or because you are a single member LLC and didn’t properly elect a structure, you’re going to pay more tax. The S Corporation is usually the best structure. If you have an LLC, you can elect S Corporation, but there is a time limit.
In this article by Megan Hughes (in answer to a question we received), she answers how you can make a late S-Corporation election.