Converting to S Corp ???????

I read an article years ago in Landline. I think it’s PS tax service, they explained the advantages of an s Corp, and suggested it was the best choice. Don’t know any details, but that’s the only time I’ve ever heard anything, besides the rates of audit being very high for Sole Propietors due to the big gaps between gross and net income in Trucking, triggering audits, vs s Corp or c Corp.

 

Wherever I lay my hats my home. We got kicked out of the Holiday Inn, for sneaking the Chihuahuas in through the window.

 

I don't think it matters for a solo dude.
It may be a dilemma, if he grows into another JB Hunt but before then electing to be either LLC or Corporation is only about filing taxes as an S-corp rather than sole-proprietor and this way saving on self-employment taxes by splitting the pay-yourself into a "reasonable" salary (payroll) and dividends.

When you create a business entity, most of the time, you do it as either Corporation or LLC , then you elect the way to be taxed. Both Corporation and LLC can elect to be taxed as an S-Corporation.

 

I do have one operator who is a type S who started as an LLC and his EIN still says XXXXXX LLC but he has a letter form the IRS showing being changed to a type S.