Should I 'Convert' My LLC to an S Corporation?

Many small businesses operate as LLCs. But owners of LLCs are treated as self-employed persons who are subject to the full 15.3% self-employment tax.

If your business is an S corporation, you can be an employee of your business, so that you won't be treated as a self-employed person.

Should you consider converting your LLC to an S corporation to possibly save money on self-employment taxes? What are the concerns? What are the steps you should take? Do you know the biggest trap to conversion from an LLC to an S corporation?

Listen to today's episode to learn more about what is involved in changing from an LLC to an S corporation for federal income tax purposes, the right way.

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