The benefits of S-Corp taxation for your LLC is that you can pay less in taxes.

If you are not taxed as a S-Corp

$100,000 net income.

All $100,000 pass through to you as self-employment income. In addition to income taxes, you’ll owe self-employment tax of $15,300, or 15.3%

If you choose to be taxed as an S corporation, you can have $50,000 pass through as earnings and $50,000 distributed as dividends. Then you’d only owe just $7,650 in self-employment tax, for a tax savings of $7,650.

Most people aren’t educated on this especially small business owners.. you should always be finding ways to keep your money..

Uncle Sam want a huge percent!

An LLC can choose to be treated as an S corporation in a two-step process:

File a Form 8832, Entity Classification Election. This causes the business to be taxed as a C corporation.
Then file a Form 2553 to elect an S corporation tax structure.