The idea of electing S-Corporation status often comes up when business owners start learning about the potential tax savings. While the election can be beneficial in the right circumstances, it is not a default step or a universal upgrade. Deciding whether an S-Corp election makes sense requires advance planning, careful evaluation, and an understanding of how your business actually operates.

This post continues our series on Tax Advisory Services by explaining how an S-Corporation election works, who may benefit, and why this discussion belongs in an tax advisory conversation rather than waiting until it’s time to file.

Choosing the right business structure is one of the most important financial decisions you'll make as a business owner. Whether you're starting your first company, branching out with a subsidiary, or looking to restructure an existing business, the entity you select will influence everything from your taxes to your legal liability. There's no one-size-fits-all solution. The best option depends on the size of your business, how it's funded, and your long-term goals. Before you make a decision, it's smart to understand the basics of the three most common structures: LLCs, S-Corps, and C-Corps.