LLC vs S-Corp & Entity Choice
“I want to change my business from a sole proprietorship to an S-Corp, will this structural change trigger an audit of my past returns?”
Changing from a sole proprietorship to an S-Corp often raises questions about how prior filings may be reviewed, but the structural change itself does not automatically trigger an audit. The outcome can depend on how the business was operated before the change, whether income and expenses were reported consistently, and whether payroll, owner compensation, and entity records line up with the new structure. In many cases, attention centers on the transition year and any differences between earlier Schedule C reporting and the new corporate filings. Working through the specifics with a CPA is the cleanest way to land on the right move.
In your 90-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“I formed a single-member LLC but forgot to get an EIN, can I just use my Social Security number on my Schedule C without issues?”
“I am transitioning my W-2 income into a consulting business, does electing S-Corp status actually lower my self-employment tax?”
“My solo business is making about the same as my old salary, should I switch from a sole proprietorship to an S-Corp?”
“I have a profitable side hustle on top of my day job, is it worth the administrative cost to form an LLC just for that income?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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