MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

S Election and YOU!!!

25 Jan 2023 · 0 min

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0:26

In this solo presentation, Mark Kohler outlines a tax strategy that involves submitting state copies of an LLC, an S corporation, and a professional corporation (PC) to satisfy state requirements, while simultaneously making a federal S‑election to convert the entity into an S corporation for tax purposes. This federal election allows the owner to avoid self‑employment tax on the business’s earnings. Kohler emphasizes that the state does not need to be aware of the federal S‑election and claims to have used this approach successfully for two decades. He warns that if a client’s accountant objects to the method, they should retain his firm’s tax lawyers to resolve any disputes and ensure compliance.

Here's the strategy. Do whatever the state wants. Give them a copy of your llc, give them a copy of your S corp, give them a copy of your PC. Then we're going to turn around and for federal purposes, we're going to make an S election. And the state doesn't need to know about that. People, I've been doing this for 20 years. No problem. Then you file an S corp, save on self employment tax. Now if your accountant over there in Hawaii or anywhere, if they say what I just said was wrong, please hire our tax lawyers. We'll clean up the mess and use people that know what the hell they're doing.