Form 2553 filed + reasonable comp memo + strategy call — $395 flat. Files for current OR back-dated tax year.
Order This Service →No retainer · ACMA CGMA reviewed · One-time election (annual reasonable-comp review optional)
Electing S-Corp status (Form 2553) can save profitable sole-proprietors and single-member LLCs 5-figure annual self-employment tax — but the election is technical (deadline March 15 for current year, late-election relief under Rev Proc 2013-30 for previous years), and once elected you MUST pay yourself a 'reasonable salary' subject to FICA. Most CPAs charge $600-$1,200 for the election plus separate $400-$1,200 for the reasonable-comp documentation. LegalZoom charges $349 but offers no advice. We do all three for $395 flat: 2553 filing, late-election relief letter if applicable, and a CGMA-reviewed reasonable-comp memo using RCReports data.
Profitable US sole proprietors / single-member LLCs earning $80K+ net annual income — the S-Corp tax savings break-even point
Your CPA mentioned 'you should be an S-Corp' but they want $1,200 to handle it
You missed the March 15 deadline and want to back-date to current tax year (Rev Proc 2013-30 is doable)
You've been operating as S-Corp but never documented reasonable comp — and your CPA is nervous about IRS audit
You're considering switching back from S-Corp because the reasonable-comp + payroll administration is overwhelming
| Option | Price | Pros | Cons |
|---|---|---|---|
| IRS Form 2553 directly | $0 | Free | High error rate; late election relief is complex; no reasonable-comp documentation |
| LegalZoom / Bizee | $149-$349 | Cheap form-filing | NO reasonable-comp documentation; NO late-election relief; NO strategy advice |
| BlackpeakCFO | $395 flat | CGMA-reviewed 2553 + reasonable-comp memo + 30-min strategy call | We don't handle ongoing payroll (use our Payroll service for $29/mo + $4/employee) |
Submit the form. We reply within 1 business day with payment link + next steps.
Yes — Rev Proc 2013-30 grants late election relief for up to 3 years after the missed deadline, provided you have reasonable cause and have been operating as if the election was in place (e.g. paying yourself a salary). Success rate on our late-relief filings is ~95%. Included in the $395.
S-Corp owners must pay themselves a "reasonable salary" subject to FICA before taking distributions (which are NOT subject to FICA). If you pay yourself $0 salary and $200K distributions, the IRS will reclassify and assess back-FICA + penalties. Our memo documents your reasonable comp using RCReports market data — IRS-defensible if audited.
Yes — standalone Reasonable Compensation Report is $495 (see separate service page). Includes RCReports analysis, written memo, and 15-minute review call.
>2% S-Corp shareholders deduct health insurance on Schedule 1 (above-the-line) but must include it in W-2 wages (Box 1 only, not Box 3/5). Our strategy call covers this. Most CPAs miss it.
Yes. You file Form 8832 first (entity classification election to corporation), then Form 2553 (S-Corp election within the corporation). We handle both in the $395 package.