Accounting charge for moving from Llc to S corp

Not even close. It's a form they have filled out 250 times before. I'd ask for clarity or a description of the services. Maybe this is for the whole year for everything? There has to be some mistake.

This form: f2553

The actual filing takes about 15 minutes.

I'd ask them for a breakdown of the charges as that seems excessive. There is possibly some accounting changes they need to make on their end, but that wouldn't take much time either.

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I'd ask for clarity or a description of the services. Maybe this is for the whole year for everything?

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Not my full year expenses. I have additional charges for my business return ($550) and for some small time we discussed something else.

I appreciate the help. My understanding without explicitly asking was this was just our time spent together on this and minor paperwork. I was expecting $500-600 in billing.

What is the threshold amount of income where it makes more sense to form an S-corp vs LLC? I currently have an LLC but my income has been increasing the last few years and am trying to decide whether or not an S Corp would reduce my overall my taxes, but from the added CPA fees it appears to be a wash

I recently was involved with a re-org for a group of related companies.

First, the attorneys converted two of the three companies from statutory Corps to LLCs. Then, they created a new LLC to be a holding company. Then, they transferred all the ownership to the new company.

All the paperwork for that from the attorneys was close to 10 grand.

We did the S election for the new company, an S Subsidiary election for the old company that remained a corporation, and did a change of taxable entity form for the other two existing companies to make them disregarded entities.

I charged $500 for the four forms. I then charged $900 for some consulting related to the transaction - mainly checking for any Built in gain and any E&P issues.

So $1400 for the forms and about 5 hours of tax planning issues.

My rates aren't near what a "top 5 southern" firm would charge, but the difference isn't that great.

$2100 for a single S election form is nuts... but if you had a partner spend an 8 hour day doing consulting and calcs that could hit $2100. But you should have known about it.

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All depends on how your company is built.

I just spent months researching for my wife who is a 1099 physician. I switched her from an s-Corp to a single member LLC.

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Interesting. I'd think with that income an S-Corp would be better. The basic rule of thumb that I have seen is around $100k of income/ salary.

At first I thought you were asking to prepare the scorp return, but just the election, yeah that seems very steep.

I’d inquire.

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if you are trying to max a retirement plan out on a 1099 single entity then you need about 350 of gross income to make it work. by the time you write off expenses, then put away 50-56k of tax free retirement, then a "reasonable salary" there isn't much left to save on SE taxes. and in a s-corp you will have more cost with a CPA for whatever bullshite they do. as a single entity llc. i figured out what she pays quarterly, can practically cut all the checks now. taxes are done for the year. now we just have the handful of monthly business expenses. it's just a lot easier than S-corp. from my research at least

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This.

and a better section 199A deduction.

I'm trying to get more of my clients out of S Corps, than into.