Should I close my S corp and switch to an LLC for my 2016 taxes?

Since 2013, I have filed my state taxes in Delaware – any 1099 I have filed in my personal taxes. I have been running an online business, no employees. Should I close the S corp and switch to a LLC for my 2016 taxes?

f you’re a US citizen living outside the country more than 330 days/year, then you meet the Foreign Income Exclusion test.

Talk with your tax preparer about this.

If you meet this test, you’re first $100K (roughly) is income tax free, if + only if you take the money yourself.

If you run the money through a US Entity (any type of organizational structure) you’re required to pay tax on 100% of all your income.

Best talk with a Tax Preparer you can run through your situation with.

I suggest checking with H&R Block Executive Tax Services.

They’re very cheap + receive up to date education about tax system changes. Likely they’ll provide more consistently correct information than expensive CPAs.

 

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