Originally Posted by petertheil56
I opened a LLC this year and started consulting.
I intend to be taxes as S-Corp by filing Form 2553 at tax time.
Do I need to run payroll and do W-2 now using quickbooks if I intend to file taxes as S-CORP and not as LLC to save on 50% of FICA?
Should I meet with a CPA now to start on the above.
Do I need to run payroll and do W-2 now using quickbooks if I intend to file taxes as S-CORP and not as LLC to save on 50% of FICA?=========>>>>>>>>Correct;as an s corp owner/EE, you need to receive wage reported on w2 UNLESS the Sc orp takes losses so no income to be paid to an EE.in general, S corps must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly.So Yyu need to create a W-2 form by filling out form W-2 and giving it to yourself,the employee/owner, by the end of January 2015, and having yourself ,the employer file the summary report W-3 with the IRS.You need to send copy of W2/W3 to SSN. Shareholder-employees are paid a salary, with their wages reported on a W-2 and with FICA taxes already withheld.
Should I meet with a CPA now to start on the above.==========>>It depends; You do not have to use an official tax pro ,cpa/ea or etc ,in order to work on a tax return. You can file your government tax return , payroll taxes or etc, yourself if you really happen to want to. The tax pro can help you deal with the government. You need to be able to find a venue to properly file your business taxes with if you happen to own a business. The venue can be very important to the taxpayer. You need to be able to properly file your business taxes because so many people are dependent upon that business succeeding. You need to be careful when you are filing your own tax return including payroll taxes.