...
- 2017.10.10 - OnlineTaxman - When to switch from LLC to S Corp
- So with this you don't pay any self-employment tax, because you're technically an employee of this corporation. But you do pay some kind of new tax on the corporation.
- Summary
- The right time to convert your LLC to S Corp
- From a tax perspective, it makes sense to convert an LLC into an S Corp, when the self-employment tax exceeds the tax burden faced by the S Corp.
- In general, with around $40,000 net income you should consider converting to S Corp. Depending on your circumstances the breakeven point could even be as low as $25,000 net income.
- How to convert an LLC to S Corporation
- For federal tax purposes you can simply make an election for the LLC to be taxed as an S Corporation. All you need to do is fill out a form and send it to the IRS.
- It is important to note that one must convert to an S Corp by March 15 in order to be applicable for the following year, or within 75 days of opening the LLC to be applicable for the year of opening
- Even though the IRS classifies the LLC as S Corp, it is still an LLC and may be taxed as such by the state where it is formed.
- The right time to convert your LLC to S Corp
Change domicile to a state with no income tax
- Undated - Form8621.com - Effect of State Domicile on Expat Moves: Helping Taxpayers Determine When and How to Keep or Terminate State Domicile
- 2012.11.02 - InternationalLiving - Moving Overseas: Save Big When You Leave from a “No-Tax State”
- 2017.02.27 - Greenback Expat Tax Services - Tax for Expats: What You Should Know About State Taxation
California
- How to determine if you're considered a resident:
- How to change your domicile:
- Cancel your driver's license.
Registering companies abroad
...