I’m currently a sole proprietor. I’m a consultant so my expenses are very low relative to income. My new accountant is extremely hyped to convert me to an s-corp. The tax math checks out, but I keep finding new non-tax expenses he didn’t mention, like having a registered agent and a virtual address. He doesn’t seem to see non-tax expenses as real, and I’m worried I’m going to finish this process only to find out the expenses eat up all the savings. I’ve got the following list of expenses so far, what am I missing?

  • Corporate tax preparation
  • Corporate taxes
  • Payroll service
  • Virtual address (so my home address isn’t in the public DB)
  • Registered agent (same)
  • alento_group@alien.topB
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    1 year ago

    /r/tax would be an ideal place to ask this question.

    You missed the costs for entity formation and annual report fees, though you did get the registered agent.

    Remember you’ll be going from a $500 tax preparation bill to $2500.