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If you're a growing business owner earning $40K or more in profit annually, electing S Corporation status may be one of the smartest financial decisions you can make. At Bizzhopper, we guide you through the IRS Form 2553 process to ensure you’re not just compliant — you’re tax-efficient, funding-ready, and structured for growth.
What Is an S Corporation Election?
An S Corporation (or S Corp) is not a business entity type, but rather a tax designation with the IRS. LLCs and corporations can file IRS Form 2553 to elect S Corp status, allowing profits and losses to pass through to shareholders without being subject to double taxation — while avoiding hefty self-employment taxes on all business income.
Key Advantages of S Corporation Status
Tax Savings on Self-Employment Taxes – You only pay payroll taxes on your salary, not on your full business profit.
Pass-Through Taxation – Avoid double taxation like C Corporations.
Retain Corporate Structure Benefits – Limited liability, perpetual existence, and more.
Enhanced Credibility – Many lenders and vendors see S Corps as more established than sole proprietors or single-member LLCs.
How Bizzhopper Makes It Easy
Electing S Corp status involves more than just filing a form — it requires choosing reasonable compensation, setting up payroll, and staying compliant with IRS requirements. We walk you through every step:
Confirm Eligibility – We verify that your business qualifies for S Corp election.
File IRS Form 2553 – On your behalf, with strategic election timing.
Set Up Reasonable Payroll – We provide guidance or refer you to trusted payroll providers.
Support Annual S Corp Compliance – So you don’t lose your status.
Is Electing S Corp Right for You?
S Corp status is best suited for:
Single or multi-member LLCs making $40K–$100K+ in net profit
Founders ready to pay themselves via payroll
Service-based businesses that don’t need outside investors
Owners looking to reduce self-employment tax burden legally
What’s Included in Our S Corp Election Package?
IRS Form 2553 Filing
Reasonable Compensation Strategy Guide
Payroll Setup Support (optional)
Entity Structuring Advice
Annual Maintenance Guidance
BOI Compliance Filing
Ongoing Tax Planning Support (via partners)
How Much Can You Save with an S Corp?
Let’s say your LLC nets $80,000 in annual profit. Without S Corp election, you’ll owe self-employment taxes (15.3%) on the full amount — around $12,240. With S Corp status, you pay payroll taxes on only your salary (let’s say $40,000), saving you over $6,000.
This alone makes the S Corp election worth it for many businesses.
S Corp vs LLC: What’s the Difference?
| Feature | LLC (Default) | LLC taxed as S Corp |
|---|---|---|
| Self-employment tax | On entire profit | On salary only |
| Payroll required | No | Yes |
| Complexity | Low | Moderate |
| Tax filing | Schedule C | 1120S + W-2 |
| Owner draws | Unlimited | Salary + distributions |
Common S Corporation Mistakes (That We Help You Avoid)
Filing Form 2553 too late
Paying zero salary to owners
Not withholding payroll taxes
Choosing wrong business structure for long-term goals
Missing BOI compliance requirements
Pro Tips for S Corp Success
Set your payroll through a platform like Gusto or ADP
Pay yourself a “reasonable salary” that the IRS won’t flag
Keep your distributions separate from payroll
Track income and expenses through proper accounting software
Work with a tax pro during your first year as an S Corp
FAQs
Q: Can I elect S Corp at any time?
A: You must file Form 2553 within 75 days of formation or by March 15 to be effective for that tax year.
Q: Can a single-member LLC elect S Corp status?
A: Yes! You’ll still file as an S Corp and receive pass-through taxation benefits.
Q: Do I need to pay myself a salary?
A: Yes — you must pay a reasonable salary and withhold/pay employment taxes.
Q: Can an S Corp build business credit?
A: Absolutely. Your structure doesn’t limit your ability to build credit or apply for funding.
Q: Will I lose my S Corp status if I make mistakes?
A: Potentially — that’s why we provide compliance reminders and support.
Launch Your S Corp with Confidence
We don’t just file your paperwork — we build your foundation. From reducing taxes to keeping your business fundable and structured, Bizzhopper helps you elect S Corp status with full support and strategy.
Ready to save on taxes and operate like a pro? Start your S Corp election today.
Before you can form an LLC, you’ll need to decide on your company name—and make sure it’s not already taken. Fortunately, every state has an online database where you can search for available names. When choosing a name, you’ll also need to avoid restricted words or phrases and include a business entity identifier, such as “L.L.C.,” “LLC,” or “Limited Liability Company.”
Your registered agent must be regularly available to accept your LLC’s state and legal mail at a physical location in the state (a registered office). This means that if you opt to be your own registered agent, your name and home or office address will become part of your LLC’s permanent public record.
Now that you’ve made the big decisions, it’s time to file the LLC state form, typically called “Articles of Organization.” In most states, LLC formation documents are processed by the Secretary of State. Requirements vary, but at minimum, you’ll generally need to include your company name, your registered agent, and a signature.
The most basic Plan
Exclusive For small Business
The most Profitable Plan
Time is money—and professionals know where to look for speed and competence without extra fees. At Northwest, we have registered offices in every state. We know the people in each state’s Corporate Division. We know the fastest filing methods. And when you hire us to incorporate, we use our knowledge to provide you fast, professional service.
As your registered agent, we’re able to list our registered office throughout your formation documents—as your principal office, directors’ business address, etc. We don’t list your personal info on filings if we don’t have to. Why? At Northwest, we practice Privacy by Default®, providing you a level of privacy you can’t get filing yourself or with a standard filing service.
We know the ins and outs of each state—and we use this knowledge to help you when you need it most. Our team of Corporate Guides® has over 200 local business experts dedicated to helping you. You can call or email us for all your toughest business questions.
Starting a business goes beyond filing paperwork with the state. If you’re serious about reaching clients and customers, you need a domain name, a website, a business phone number, business email addresses, and SSL Security. You can piece those services together with different companies, or you can hand it off to us.
Indeed, BizzHopper provides services for forming corporations (C corps). We provide the same simplicity and compliance features as our LLC services, managing the paperwork required to register corporations with the state.
Choose our corporation formation service as the first step in the ZenBusiness corporation formation process. You will include information about the directors and officers, as well as your company name and address. Your Articles of Incorporation will be filed with the state by us. Official documents will be provided to you after your corporation is registered. To assist you in meeting legal obligations, we provide extra services like compliance management and registered agent support.
The bundle you select will determine how much it costs to form a C company with BizzHopper: Everything in the BizzHopper Pro bundle is included in the Premium Package, which starts at $299 (plus state costs). Other features include our website, domain, and email services, as well as premium support and a business documents bundle.
