Cost to open S-Corp?

AffApprentice

AffApprentice

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Nov 19, 2009
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Hey guys,

I opened an LLC a few months ago, but I think the time has come to switch to an S-Corp. My accountant just sent me some info about it and it looks like he's charging $1300 to set it up for me.

Does that sound like a reasonable fee? I'm assuming I have to have a CPA do this for me, and there's no option to try to do it myself?

Thanks.
 


Really simple paperwork... Anyone can set it up.. Depending on the state up to $200(maybe some a bit more) is your max cost
 
AffApprentice said:
Hey guys,

I opened an LLC a few months ago, but I think the time has come to switch to an S-Corp. My accountant just sent me some info about it and it looks like he's charging $1300 to set it up for me.

Does that sound like a reasonable fee? I'm assuming I have to have a CPA do this for me, and there's no option to try to do it myself?

Thanks.
Click to expand...

Do it yourself.
 
setup my LLC a few weeks ago.

gonna do s-corp when i become big.

idk, i think i might need an CPA but i feel like... idk if i could trust anyone :<
 
Super simple around the $200 mark. Just download master business license from you state ($59) here in WA State. Then Download the forms at the Sec. of State website and fill them out. Been a while but I think it was around $150. You just check the box that says S corp.
 
s corp

had a local paralegal do mine for about 200, i had them add a special clause stating that i would not be personally responsible if the business was sued.
 
AffApprentice said:
Hey guys,

I opened an LLC a few months ago, but I think the time has come to switch to an S-Corp. My accountant just sent me some info about it and it looks like he's charging $1300 to set it up for me.

Does that sound like a reasonable fee? I'm assuming I have to have a CPA do this for me, and there's no option to try to do it myself?

Thanks.
Click to expand...
What's your reasoning behind switching to an S-Corp? If it's simply for tax reasons, you can just change the way your LLC is taxed, to be taxed like an S-Corp, without changing the corporate structure. That might cost a bit from your accountant, and you'd need payroll processing/payroll tax services (Paychex, Intuit, and your bank can all provide this), and possibly workman's comp, and disability/unemployment fees, but the savings should outweigh the cost.
 
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you can do it yourself or be a dumb ass like me and hire an attorney so he can also be my general counsel and he is the keeper of my records, minutes etc. I go too much random shit in my life so I paid more to have a professional handle my stuff

good luck and get it done
 
Its super easy to file this stuff yourself. Worst case scenario it takes 1 hour to read up about the forms and 1 hour to fill it out, mail em in..

If you cannot be bothered, have your accountant do it. If you are not making super leveraged cash maybe its cheaper to do it yourself.
 
bizkiller said:
oh.. so i already have an LLC set up, so i can get taxed as an S-corp???

blahhh
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Yep. Check IRS Forms 8832 and 2553 - might just need 2553, but there are some cases where you might need both. IRS tax forms - Wikipedia, the free encyclopedia As for the state level, requirements differ by state - but that's an easy question for your accountant or state LLC/Corporation office. IRS does not charge any fees for the change in classification, and neither did my state (which didn't require any changes, actually).

If your accountant isn't aware of this, or is trying to charge you lots of cash, find a new accountant. Mine didn't charge me anything to help file the forms (though you can do this yourself), and it only adds about $100-150 for tax prep to take care of the employment taxes and extra tax forms. There are added costs for a payroll service which is highly recommended in order to keep your state & federal employment tax liabilities straight, but if you're making any decent cash, the benefits should outweigh the cons.
 
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shawnhag said:
had a local paralegal do mine for about 200, i had them add a special clause stating that i would not be personally responsible if the business was sued.
Click to expand...

<--- This.

Has to be sarcasm.

To any noob, it doesn't work like that folks.
 
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