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

The Worst S-Corp Mistake You Can Make

25 Jul 2026 · 0 min

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Mark Kohler warns against electing S-corp status for an operational partnership LLC because it severely restricts tax write-offs. S-corp treatment should be applied at the individual partner level, not the partnership entity level. He covers this mistake in detail in his book The Tax and Legal Playbook.

If you're going into a partnership that is operational, what we see as a problem is taxpayers, they'll make an S election on the partnership LLC, and that is disastrous. It really inhibits the ability to take write-offs, believe it or not. And I've even got a chapter of this in my book, The Tax and Legal Playbook. The S corporation is important, but at the partner level, not the partnership level. And we could talk about that for an hour. So just put that on your list.