As an LLC, you may elect to file (with the IRS) as an S-corp within the first 75 days of your calendar year. You can't just yo-yo back and forth from one filin

As an LLC, you may elect to file (with the IRS) as an S-corp within the first 75 days of your calendar year. You can't just yo-yo back and forth from one filing classification to another so you should take some time considering the consequences. See http://answers.onstartups.com/ http://answers.onstartups.com/ for answers on this topic. Some LLCs make this election so they can take a distribution at the end of the year at a lower tax rate. The IRS monitors this, and expects you take a "reasonable salary" as income. I recently made the election for similar reasons, but also to allow me to run my company more like a startup, and less like a consulting service. There's enough information out there to make a decision, I think, but if you're still in doubt get an accountant.